Micron, Qualcomm forecasts add $400B to chip stocks

Semiconductor stocks surged in after-hours trading on Wednesday after Micron Technology ↘ 4.75% posted record quarterly results and Qualcomm ↗ 1.89% unveiled an ambitious data-center strategy, together adding more than $400 billion in market capitalization to the chip sector and reinvigorating Wall Street's AI trade.U.S. News & World Report+1

Micron Shatters Expectations

Micron reported fiscal third-quarter revenue of $41.46 billion, up from $9.30 billion in the year-ago period — a gain of more than 340% — and well above consensus estimates of roughly $35.8 billion. Non-GAAP earnings per share came in at $25.11, beating estimates by more than $4. The company's shares jumped in extended trading after the results were released.MarketBeat+4

The guidance was even more striking. Micron projected fiscal fourth-quarter revenue of approximately $50 billion, plus or minus $1 billion, compared with analyst expectations of around $41.6 billion to $43.2 billion. Adjusted EPS guidance of roughly $31 also far exceeded the consensus of about $25.Micron Technology Q3 2026 Revenue Surpasses $41.5B, Boosts Stock Futures+2

Driving the results is relentless demand for high-bandwidth memory chips used in AI accelerators and data-center GPUs. Micron disclosed that it has signed 16 strategic customer agreements representing approximately $22 billion in cash deposits and financial commitments, with roughly $100 billion in minimum guaranteed revenue over the remaining terms of those contracts. The company said supply constraints are projected to persist for at least two years.investing+2

Qualcomm Bets Big on Data Centers

Adding momentum, Qualcomm held its Investor Day in New York on Wednesday, where it projected more than $15 billion in data-center chip revenue by fiscal 2029 — a bold target for a company long associated with smartphone processors. Qualcomm announced that Microsoft ↗ 0.80% and Meta Platforms ↗ 2.68% will use its new AI chips and that it will produce custom silicon for two additional unnamed hyperscale customers.reuters+3

The company unveiled a new architecture called High Bandwidth Compute, a near-memory 3D-stacked accelerator design, and introduced the Dragonfly C1000 server CPU as part of a broader push to diversify beyond mobile.startupfortune+1

A Sector Reawakened

The combined announcements reignited enthusiasm across the semiconductor sector. The PHLX Semiconductor Index ↘ 1.56% has risen roughly 90% in 2026, and Micron alone has gained more than 260% year to date. Reuters reported the after-hours surge added over $400 billion in market value to chipmakers collectively, underscoring how AI infrastructure spending continues to accelerate faster than even optimistic forecasts anticipated.MarketScreener+1