Micron Technology reported a 346% year-over-year revenue increase in its fiscal third quarter of 2026, reaching approximately $41.5 billion. In comparison, Nvidia's fiscal Q2 2027 revenue was roughly $96.2 billion, marking 106% growth. Micron's adjusted earnings per share reached $25.11, with gross margins hitting 84.6%.
The company's growth is driven by high-bandwidth memory (HBM) chips, essential for AI accelerators. Micron is one of three global manufacturers capable of producing HBM at scale, alongside SK Hynix and Samsung. This market position has allowed the firm to secure multi-year customer agreements valued at approximately $100 billion, extending through 2030.
These contracts include floor pricing terms to guarantee minimum product prices. Analysts project Micron's fiscal 2027 revenue growth at 84%, while Nvidia's is estimated at 42%. Over the past year, Micron's stock returns have significantly outperformed those of Nvidia. The semiconductor industry is expected to generate profits of roughly $700 billion in 2027.
Despite the growth, the memory market remains cyclical. While floor pricing terms in the new contracts provide some protection against potential demand shifts, they do not entirely eliminate the risks associated with industry-wide capacity overbuilding.
