Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTHarsh Chauhan, The Motley FoolMon, June 29, 2026 at 7:13 PM GMT+2 5 min readShares of Micron Technology (NASDAQ: MU) have shot up by a staggering 259% in 2026, as of this writing, and it looks like its red-hot rally isn't going to end any time soon.The latest catalyst for Micron stock came when it released its fiscal 2026 third-quarter results (for the three months ended May 28) on June 24. The company's revenue and earnings blew past Wall Street's expectations, and its guidance for the current quarter was also well ahead of what analysts were looking for.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 »Let's take a closer look at Micron's performance and check why this high-flying artificial intelligence (AI) stock has the potential to jump by over 3x in a year.Image source: Micron Technology.Micron's revenue in fiscal Q3 shot up by almost 4.5x year over year to $41.5 billion, miles ahead of the $35.1 billion consensus estimate. Even better, its earnings per share jumped by 13x year over year to $25.11, again crushing the consensus estimate of $20.39 per share.The phenomenal demand for memory and storage chips used in AI accelerators and data centers, and ongoing supply constraints, propelled Micron's non-GAAP gross margin to 84.9% last quarter, up from 39% in the year-ago period. The company anticipates its gross margin to rise further in the current quarter to 86%.What's more, the midpoint of Micron's revenue guidance of $50 billion points toward another year-over-year increase of 4x in its top line. Meanwhile, its earnings per share are on track to increase by just over 10x to $31.00, according to the midpoint of the guidance range. An important point from Micron's latest earnings call was that customers are entering into long-term contracts with the company to secure memory supply.Micron signed 16 strategic customer agreements (SCAs) in fiscal Q3. The company notes that 14 of these SCAs represent a minimum contracted revenue of $100 billion over the remainder of the contract. Additionally, Micron has structured these SCAs as "take-or-pay agreements, with binding commitments to purchase specific volumes over this multi-year term." So, the buyers will either have to purchase a minimum quantity of memory chips from Micron over the contract term or pay a fee anyway.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info