Micron Technology (NASDAQ:MU) led memory and artificial intelligence chip stocks higher on Thursday after reporting fiscal third-quarter results that exceeded analyst expectations. The company posted revenue of $6.81 billion for the quarter ended May 28, 2026, up 17% year-over-year, and non-GAAP earnings per share of $0.62, beating the consensus estimate of $0.51 per share, according to data from FactSet.
The strong performance was driven by robust demand for high-bandwidth memory (HBM) used in AI data centers. Micron's data center revenue grew 25% sequentially, with HBM sales contributing significantly. CEO Sanjay Mehrotra stated, 'Our fiscal third-quarter results reflect strong execution and the growing adoption of our AI-optimized memory solutions.'
Analysts responded positively, with several raising their price targets. Morgan Stanley reiterated an 'overweight' rating and increased its target to $160 from $140, citing the company's leadership in HBM technology. The stock rose 8.3% to $148.50 in Thursday trading, lifting the broader semiconductor sector.
Looking ahead, Micron guided fiscal fourth-quarter revenue of approximately $7.6 billion, plus or minus $200 million, above the consensus of $7.2 billion. The company expects non-GAAP EPS of $0.85, plus or minus $0.05, compared to the consensus of $0.72. The guidance reflects continued strength in AI-related memory demand and improving pricing in traditional DRAM markets.
Micron's results come amid a broader recovery in the memory chip market, driven by AI infrastructure spending and a rebound in PC and smartphone demand. The company's HBM3E products are now in volume production and are expected to be a key growth driver in the coming quarters.
