Key Takeaways
- Micron delivered Q3 revenue of $41.46 billion, representing a 346% year-over-year surge, with earnings per share of $25.11 — surpassing forecasts by more than $4.
- CEO Sanjay Mehrotra explained to Jim Cramer that the memory chip crisis is structural rather than cyclical, with new manufacturing facilities delayed until 2027–2028.
- Both HBM3E and HBM4 memory products are completely sold out through 2027, supported by $22 billion in prepaid deposits from hyperscale customers.
- The company has delivered over $1 billion worth of HBM4 chips and asserts it leads SK Hynix and Samsung in DRAM and NAND technology.
- MU shares currently trade around $970, below the 52-week peak of $1,255, while maintaining approximately 244% gains year to date.
Micron Technology (MU) shares are hovering near $970, retreating from their 52-week high of $1,255 reached on June 25, yet the stock has still climbed roughly 244% since the beginning of the year. This recent decline hasn’t altered the fundamental narrative — a point CEO Sanjay Mehrotra emphasized during his appearance with Jim Cramer on Mad Money on June 30.
Cramer posed the question weighing on every investor’s mind: when will the memory shortage finally resolve? Mehrotra offered a straightforward answer.
“The industry requires greenfield capacity. That translates to new construction of clean room facilities. These facilities require significant lead time from groundbreaking to initial wafer production.”
Micron’s inaugural Idaho manufacturing plant will begin producing wafers by mid-2027, with full-scale production primarily ramping throughout 2028. A secondary Idaho facility becomes operational by the close of 2028. The New York site follows subsequently. The supply constraints, clearly, won’t dissipate anytime soon.
Cramer had previously highlighted Micron’s Q3 performance as among the most impressive earnings surprises he’s witnessed. The figures validate that assessment. Revenue reached $41.46 billion, climbing 346% year over year from $9.30 billion. Non-GAAP earnings per share hit $25.11, exceeding the $20.78 estimate. Free cash flow achieved a company record of $18.30 billion.
Q4 projections are equally remarkable: $50 billion in anticipated revenue, approximately 86% gross margins, and earnings per share of $31.00.
Breaking Ground with HBM4
HBM3E and HBM4 memory products are entirely allocated through calendar year 2027, with commitments already stretching into 2028. Hyperscale cloud providers have placed $22 billion in upfront cash deposits to guarantee their supply allocation.
During the earnings call, Mehrotra revealed that Micron had delivered in excess of $1 billion worth of HBM4 products. This represents more than just a revenue milestone — it demonstrates technological supremacy. HBM4 ranks as the most sophisticated memory product globally to manufacture, and Micron stands as the sole U.S.-based producer operating at commercial scale.
When Cramer questioned him directly about whether Micron has overtaken SK Hynix and Samsung, Mehrotra responded confidently: “In both DRAM and NAND technology, we maintain clear technology leadership.” Micron’s patent portfolio now encompasses nearly 65,000 patents.
Cramer additionally highlighted the stock’s valuation. Despite the substantial appreciation, MU trades below eight times earnings.
Domestic Manufacturing Expansion
Micron has pledged $200 billion toward U.S.-based manufacturing and research and development initiatives, targeting the creation of over 90,000 employment opportunities. The corporation is also investing $300 million in developing a domestic semiconductor workforce through apprenticeship programs, community college partnerships, and university collaborations.
Cramer referenced Morris Chang’s assertion that U.S. chip production costs 50% more than Taiwanese operations. Mehrotra countered by highlighting Micron’s current Manassas, Virginia facility, which currently manufactures advanced memory solutions for automotive, defense, medical, and aerospace applications.
Regarding consumer markets, Mehrotra recognized that AI data center demand is constraining memory availability for smartphones and PCs, driving up consumer device prices. He noted Micron maintains approximately 40% of its business in consumer segments to preserve portfolio diversification.
MU stands at $970 as of July 2, with fourth-quarter projections calling for $50 billion in revenue and earnings per share of $31.00 ahead.
