Micron Technology shares climbed 304% in the first half of 2026, more than 30 times the S&P 500’s 10% gain, as demand for its memory and storage chips outran supply. Two record quarters and bullish fourth-quarter guidance drove the run, and management has locked in customer contracts stretching toward 2030.
Micron Technology soared 304% over the first six months of 2026, more than 30 times the S&P 500’s 10% gain over the same stretch, according to data from S&P Global Market Intelligence. Strong demand for the company’s flash memory and storage chips, paired with limited supply, pushed prices higher and carried the shares with them.
Two record quarters
Micron delivered two quarterly reports since the start of the year, and each topped the one before. In March, the company posted fiscal 2026 second-quarter revenue of $23.9 billion, up 196% year over year and 75% sequentially, while diluted earnings per share of $12.07 surged 756%. The gains were broad, with the cloud memory and core data center units growing 163% and 211% year over year.
The late-June report went further. Micron generated third-quarter revenue of $41.5 billion, up 346% year over year and 73% sequentially, and EPS surged more than 13-fold to $24.67. Its core data center unit grew 653% year over year, with cloud memory up 306% and the automotive and embedded unit up 311%. CEO Sanjay Mehrotra noted that Micron delivered records across revenue, gross margin, and EPS.
What management sees next
Management remains bullish and is forecasting another quarter of triple-digit gains. Micron guided to fourth-quarter revenue growth of 342% to $50 billion, with gross margin climbing to 86% at the midpoint and adjusted EPS of $31.00, a 10-fold increase.
The company has also worked to protect that windfall. It locked 16 major customers into three- and five-year, noncancelable agreements covering 20% of its DRAM volume and one-third of its NAND volume, which management says “cannot be canceled.” Micron has collected more than $22 billion in cash and financial commitments to secure those deals, extending its visibility toward 2030. The stock currently trades at 21 times earnings.
Source: The Motley Fool
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