Micron posts all-time quarterly high, beats Wall Street on guidance
Next-quarter forecast also tops estimates
South Korea's memory chip duo rides the tailwind
Samsung Electronics, SK hynix combined Q3 operating profit seen near 180 trillion won
Micron Technology, widely regarded as a bellwether for the memory chip industry, delivered an earnings surprise that blew past market expectations. The US chipmaker also issued guidance for the following quarter that exceeded analyst forecasts, helping to dispel growing fears that the memory chip cycle had already peaked.
The results are rekindling optimism about the second-half earnings of South Korea's two memory chip giants, Samsung Electronics and SK hynix. With robust AI demand continuing to drive profitability, analysts project the combined operating profit of the two companies for the third quarter will reach around 180 trillion won ($133 billion).
Micron said Wednesday (local time) that it set an all-time quarterly record in its fiscal fourth quarter of 2026 (June–August). Sales came in at $54.23 billion and operating profit at $43.75 billion, jumping 379.3 percent and 1,097.3 percent, respectively, from the same period a year earlier.
By segment, the data center business — where demand for AI servers and HBM is concentrated — led growth, jumping more than 11 times year-on-year to $18 billion. The cloud memory segment followed at $16.28 billion, with the mobile and client segment at $13.11 billion and the automotive and embedded segment at $6.82 billion. Adjusted earnings per share for the quarter came in at $33.42, topping Wall Street's consensus estimate of $31.61.
What drew particular attention from the market was the guidance Micron issued that day. CEO Sanjay Mehrotra said the company expects "even stronger results in fiscal year 2027," signaling that its growth trajectory would continue.
Micron projected fiscal first-quarter 2027 sales of $61.5 billion and EPS of $38.15 — both above Wall Street analysts' estimates of $57 billion and $35.40, respectively.
The results have in turn lifted expectations for Samsung Electronics and SK hynix. Micron typically reports quarterly earnings about a month ahead of its South Korean peers, making it a closely watched leading indicator of global memory market conditions.
Based on the average three-month consensus compiled by financial data provider FnGuide, Samsung Electronics is forecast to post sales of 202.39 trillion won and operating profit of 108.68 trillion won in the third quarter of this year. SK hynix is expected to record sales of 98.27 trillion won and operating profit of 77.22 trillion won. On an operating profit basis, those figures represent year-on-year increases of 793.3 percent for Samsung Electronics and 578.4 percent for SK hynix.
"The semiconductor market in October is expected to enter a phase that once again confirms the structural fundamental shift toward next year," said Baek Gil-hyeon, a researcher at Yuanta Securities Korea. "Solid real demand centered on AI data centers, along with the transition to next-generation architectures, will continue to form a strong floor for the semiconductor sector."
Analysts also expect next-generation HBM selling prices to rise sharply as demand surges, while the expansion of HBM production squeezes conventional DRAM output and creates a supply shortage.
"HBM consumes more than three times the wafer volume of conventional DRAM, so expanding HBM production inevitably erodes a significant portion of standard DRAM supply capacity," said Kim Dong-won, head of research at KB Securities. "A shortage of conventional DRAM is unavoidable, and HBM selling prices next year are estimated to rise more than 100 percent compared to this year."
jiyun@heraldcorp.com
