Key HighlightsMicron rallied 17.1% following fiscal Q3 2026 results showing $41.46 billion in revenue, a 346% year-over-year increase, with EPS of $25.11 crushing the $20.5 consensusCompany provided Q4 outlook of approximately $50 billion in revenue and roughly $31 EPS, significantly exceeding analyst projectionsMicron secured approximately $100 billion in multi-year strategic customer commitments through take-or-pay arrangements with 16 partnersLeadership indicated supply won’t match demand until at least 2028Barclays upgraded MU price target by 70% to $2,000 from $1,175 while maintaining a Buy ratingMicron Technology posted a quarter for the history books on Wednesday, sparking an immediate and powerful response from investors.Micron Technology, Inc., MUThe semiconductor manufacturer specializing in memory chips revealed fiscal Q3 2026 sales of $41.46 billion, representing a 346% year-over-year surge and landing approximately 17% higher than Wall Street’s projections. The company’s non-GAAP earnings per share reached $25.11, significantly exceeding the consensus forecast of $20.50. Gross margin expanded dramatically to 84.9%, a stark contrast to the 39% recorded in the same period last year.MU stock climbed 17.1% following the announcement, reaching $1,209 per share — marking a fresh 52-week high.While the quarterly performance was impressive in isolation, forward-looking guidance proved to be the real catalyst behind the stock’s momentum.Micron projected fiscal Q4 revenue at approximately $50 billion with earnings per share around $31. These figures substantially exceeded Wall Street expectations, which had anticipated Q4 revenue near $43 billion and EPS of approximately $25.31.$100 Billion Worth of Binding Customer CommitmentsThe chipmaker disclosed it has executed 16 Strategic Customer Agreements (SCAs) — binding take-or-pay contracts spanning data center, consumer, and automotive sectors. Fourteen of these arrangements include a combined minimum revenue obligation of $100 billion throughout their duration.These represent firm commitments backed by real capital. Partners have already deposited $22 billion. Standard SCAs extend five years (2026–2030), while automotive-focused agreements run for three-year periods.Barclays analyst Thomas O’Malley characterized the SCA disclosures as exceeding expectations in both dollar magnitude and customer count. He boosted his MU price target by 70% to $2,000 from $1,175, applying a 12x multiple to his updated 2027 EPS projection of $166.74.O’Malley highlighted that existing SCAs represent roughly 20% of total DRAM volume and 33% of NAND volume. After finalizing all pending agreements, Micron anticipates over 50% of its revenue will originate from these contractual commitments.Data-center segment revenue exceeded $25 billion during the quarter — translating to an annualized run rate surpassing $100 billion.Supply Constraints Expected Through 2028Micron CEO Sanjay Mehrotra stated the company sees “no line of sight” to supply equilibrium with demand occurring before 2028. DRAM pricing increased in the low-60s percentage range during the quarter, fueled by a fundamental supply shortage affecting the entire industry.This supply-demand imbalance is visible across competitors as well. Samsung disclosed a 146% spike in DRAM average selling prices during Q1. SK Hynix reported mid-60s percent price increases.The constrained supply environment is affecting all three leading memory manufacturers.It’s notable that MU shares had declined 13.6% just 48 hours prior following news that SK Hynix was moderating its high-bandwidth memory (HBM) expansion plans. That selloff now appears to have been an overreaction.Investors should monitor HBM scaling expenses and new fabrication facility construction, which will contribute approximately $1 billion to FY2027 operating costs, along with the eventual repayment of the $22 billion in customer deposits.Wall Street maintains a Strong Buy consensus rating on MU, featuring 28 Buy ratings against just one Hold. The average analyst price target of $1,526.67 suggests approximately 36% potential upside from current trading levels.Micron shares have appreciated 283% year-to-date.The post Micron (MU) Stock Soars 17% on Record Quarterly Results and $100B in Future Orders appeared first on Blockonomi.