Stock market futures climbed on June 25 as Micron Technology’s blockbuster earnings and upbeat guidance revived confidence in the artificial intelligence trade after a sharp semiconductor selloff the previous day.
Micron reported third-quarter fiscal 2026 revenue of $41.46 billion, far exceeding Wall Street estimates of $35.85 billion, according to Reuters and MarketBeat. The company posted adjusted earnings per share of $25.11, compared with the consensus estimate of $20.78 per share.
The memory chip maker forecast fourth-quarter revenue of approximately $50 billion, crushing analyst expectations of $43.2 billion, Bloomberg reported. For the same period, Micron projected adjusted earnings per share of $30 to $32, versus estimates of $25.84 per share, according to Seeking Alpha.
Micron’s customers have committed $22 billion to lock in supplies of memory chips, the company disclosed, underscoring the urgency of AI-driven demand. These commitments span 16 strategic customer agreements across data center, consumer, and automotive markets, with take-or-pay provisions designed to secure supply and protect margins, Reuters noted.
Micron shares surged 12% in after-hours trading following the announcement, according to Reuters. The rally extended to other semiconductor stocks, generating over $400 billion in stock market value across the broader chip sector, as Western Digital, Sandisk, Seagate Technology, Arm Holdings, Marvell, Broadcom, and Applied Materials all posted gains.
S&P 500 futures and Nasdaq 100 futures climbed 0.5% and 1.8%, respectively, according to CNBC, as investors welcomed the strong results and forward guidance. The futures rally marked a sharp reversal from the previous session, when the Philadelphia Semiconductor Index plunged 7.9% on June 23 amid concerns over AI spending sustainability, according to Reuters and the Wall Street Journal.
Micron CEO Sanjay Mehrotra said in prepared remarks that the company expects tight conditions to persist beyond calendar 2027 as a result of AI-driven demand coupled with structural supply constraints, Reuters reported. The company does not anticipate memory supply catching up with rising demand in the near term, he added.
The earnings represent a dramatic turnaround for the sector. Micron’s stock has surged more than threefold this year despite a 13% plunge on June 23, boosting its market value to over $1 trillion, according to Reuters. The rebound follows a brutal industry-wide downturn in 2023, when excess inventory crushed prices.
Sources
- Reuters — Micron’s Q3 earnings, customer commitments, CEO guidance, stock surge, and semiconductor index performance
- Bloomberg — Q4 revenue forecast of approximately $50 billion and analyst expectations
- MarketBeat — Q3 revenue, gross margin, and EPS figures
- Seeking Alpha — Q4 EPS guidance and analyst consensus
- CNBC — S&P 500 and Nasdaq 100 futures movements
- Investopedia — Micron’s adjusted earnings and revenue figures
- Wall Street Journal — Semiconductor index decline on June 23
