Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n No wonder the stock is soaring. The results were incredible. <\/p>\n Micron’s fiscal Q3 revenue, for the period ended May 28, 2026, came in at about $41.5 billion. That’s up from $23.9 billion in fiscal Q2 and just $9.3 billion in the year-ago quarter — a 346% year-over-year jump. In addition, Micron’s gross margin reached 84.6% on a GAAP basis, and non-GAAP (adjusted)<\/a> earnings per share hit $25.11. <\/p>\n Topping it all off, all four of Micron’s business units — cloud memory, core data center, mobile and client, and automotive and embedded — posted higher revenue than both the prior quarter and the year-ago period. <\/p>\n The headline number, though, was the outlook. Micron guided fiscal Q4 revenue to $50 billion, plus or minus $1 billion — well above the $43 billion Wall Street had been modeling. <\/p>\n And the profitability guided was impressive, too. Management said its fiscal fourth-quarter gross margin is expected to climb to about 86%. Additionally, it guided for adjusted earnings per share of $31.00, plus or minus $1.00, for the period. <\/p>\n Meanwhile, the stock’s forward price-to-earnings ratio is about 10 — a remarkably restrained multiple for a company whose top line has more than quadrupled in a year, and one that implies the market is pricing in either a peak in earnings or a sharp deceleration down the road. <\/p>\n What may matter more than the quarter itself, however, is what management said about demand durability. <\/p>\n Micron announced what it called “transformational Strategic Customer Agreements” — multi-year deals that lock in volume and provide pricing visibility for memory supply. HBM4, built on Micron’s 1-beta DRAM technology, is already in high-volume shipments to its lead customer, with qualification samples now going to additional end customers. The 16 signed agreements represent about 20% of Micron’s DRAM volume and a third of its NAND volume over the agreement period. <\/p>\n Story Continues <\/p>\n “We believe our multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron’s strong financial performance,” Micron CEO Sanjay Mehrotra said in the company’s fiscal Q3 earnings release. <\/p>\n What this means for the AI trade <\/p>\n For investors who spent the week dumping AI-exposed semiconductors on fears of peaking demand, the report is a clean rebuttal. <\/p>\n Micron’s cloud memory business unit, the most direct AI proxy in the company’s portfolio, grew revenue from $3.39 billion a year ago to $13.77 billion, and its operating margin hit 78%. The core data center unit grew even faster, with revenue up more than sevenfold year over year. None of this looks like the profile of a market getting ready to roll over. <\/p>\n Of course, this doesn’t mean there aren’t risks to both Micron stock itself and the overall AI trade. Note that Micron’s capital expenditures climbed to $7.1 billion in fiscal Q3 alone as it races to bring new HBM capacity online. And the memory business has always been cyclical, with customers prone to over-ordering when supply is tight and canceling when it isn’t. <\/p>\n With that said, the Strategic Customer Agreements are notable. But their terms haven’t been disclosed, so there’s uncertainty surrounding exactly what this means. <\/p>\n Overall, however, the central question the market was asking heading into this report was whether AI memory demand was peaking. The combination of $50 billion in next-quarter revenue, an 86% gross margin, and multi-year agreements that provided contracted supply assurance across meaningful portions of DRAM and NAND is hard to read as anything but a no. For the broader AI trade, that’s a meaningful data point — and probably a relief. <\/p>\n Should you buy stock in Micron Technology right now? <\/p>\n Before you buy stock in Micron Technology, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $392,713!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,227,782!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 897% \u2014 a market-crushing outperformance compared to 208% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of June 24, 2026. <\/p>\n Daniel Sparks<\/a> and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. A $50 billion outlook, and demand already spoken for <\/p>\n