Skip to navigationSkip to main contentSkip to right columnHarsh Chauhan, The Motley FoolThu, July 2, 2026 at 6:05 PM GMT+2 5 min readMicron Technology (NASDAQ: MU) delivered fantastic results for the third quarter of fiscal 2026 (which ended on May 28) on June 24. The memory specialist not just crushed Wall Street's expectations by a mile, but its guidance made it clear that the red-hot demand for memory chips isn't going away any time soon.Micron stock jumped nearly 16% after its blowout quarterly report. The company's performance lifted other memory stocks as well, and Lam Research (NASDAQ: LRCX) was one of them. Lam Research supplies semiconductor manufacturing equipment to chipmakers, foundries, and memory manufacturers. Its shares jumped over 7% following Micron's results. Let's see why that was the case.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.Micron's fiscal Q3 revenue shot up by 346% year over year to $41.5 billion last quarter. However, its earnings per share grew by a whopping 1,215%. Micron management noted on the latest earnings call that demand for both dynamic random-access memory (DRAM) and NAND flash "continues to significantly exceed industry supply."What's more, management added that the tight supply conditions will persist beyond 2027, primarily due to AI-fueled demand from data centers, high-end personal computers (PCs), smartphones, vehicles, and robots. Also, Micron notes that demand for high-performance, high-value memory chips is increasing to support AI workloads, which is why the company is on track to significantly ramp up the build-out of new capacity.The addition of new capacity explains why Micron's capital expenditure in fiscal 2026 is going to land at $27 billion. That's nearly double Micron's capex in fiscal 2025. The company also notes that its quarterly capex in fiscal 2027 will be higher than in fiscal Q4. Micron is forecasting $10 billion in capital spending this quarter, indicating that its fiscal 2027 capex will exceed $40 billion.Importantly, Micron isn't the only memory manufacturer adding new capacity. Korean memory giant SK Hynix intends to double its wafer capacity over the next five years. Samsung, meanwhile, is planning to spend an enormous $648 billion in South Korea over the next decade to shore up chip production, as reported by Reuters.All this bodes well for Lam Research, which gets 39% of its revenue from selling memory manufacturing equipment. On the other hand, it derives 54% of its revenue from the sale of foundry equipment. So, Lam is in a solid position to sustain the impressive revenue and earnings growth it has been clocking in recent quarters.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info