Micron Guides to $50 Billion Revenue in Q4 FY2026 Amid AI-Driven Demand for Memory Chips
Micron Technology (MU) has guided toward approximately $50 billion in revenue for the fourth quarter of fiscal year 2026, driven by surging demand from artificial intelligence applications. The company's high-bandwidth memory (HBM), essential to AI training chips like NVIDIA’s H100 and B200 GPUs, is at full capacity through 2027 with strong gross margins expected in Q4 (~86%). Micron has secured $22 billion in multi-year strategic customer agreements, including $18 billion in cash deposits from major hyperscalers. The company reported a record free cash flow of $18.3 billion for the third quarter and is positioned to return 100% of excess cash to shareholders starting December 9, 2026. Micron's revenue has grown rapidly over recent quarters, rising from $11.3 billion in Q1 FY2026 to $41.5 billion in Q3 FY2026. The company’s gross margin improved significantly year-over-year and is expected to reach 86% in the next quarter—far above historical averages. This upcycle contrasts sharply with a severe downturn in FY2023 when memory prices collapsed, leading to losses and stock price declines. The TIKR valuation model forecasts continued strong growth through FY2030 at roughly 23% annual revenue expansion, suggesting potential for long-term shareholder value despite the cyclical nature of Micron’s business.
Tickers: $MU
Topics: AI memory demand HBM production revenue guidance semiconductors