Micron Technology's shares jumped up to 19% in after-hours trading after reporting a fiscal third-quarter revenue increase to $41.5 billion, driven by unprecedented demand for high-bandwidth memory (HBM) chips powering AI infrastructure.
HBM Chips Fuel Micron’s Rapid Growth
Revenue soared nearly fourfold from $9.3 billion a year earlier, as over half of Micron's memory sales now come from data centers. HBM chips, which enable AI accelerators like Nvidia GPUs to process massive data volumes efficiently for large language models, have shifted from a commodity to a premium constrained resource. Gross margins expanded to 81.2% this quarter, indicating strong pricing power without the need for discounting.
Implications for AI and Investors
Google’s Cloud division, a major AI infrastructure player, reported a 63% revenue increase to $20 billion in Q1 2026, with its Q2 earnings scheduled for July 22. The cloud backlog nearly doubled in the previous quarter, highlighting sustained AI investment by hyperscalers such as Google, Microsoft, Amazon, and Meta.
In parallel, Ondo Finance launched MUon, a tokenized version of Micron’s stock, allowing non-US investors crypto-based exposure to MU shares around the clock. This product faces a critical test amid the heightened volatility and market attention following Micron’s earnings.
The rapid expansion in AI-focused memory demand also raises risks related to the market’s concentration among a few hyperscalers and the historically boom-and-bust nature of the sector. Google’s upcoming earnings report will be closely watched as a bellwether for the AI supply chain’s outlook, including tokenized equity markets.
Information presented here is for informational purposes only and does not constitute financial advice.
