Micron Technology (MU +2.89%) stock rose roughly 5.5% on Thursday, Sept. 17, after Intel warned that the memory shortage could get worse.
The S&P 500 and the Nasdaq Composite rose 1.1% and 1.7%, respectively.
Tight supply can protect Micron's prices and margins
At a Sept. 15 conference, Intel CEO Lip-Bu Tan said that "memory production capacity is very limited and that "the situation will get even worse next year."
Micron is the largest U.S.-based memory maker and has benefited immensely from the AI data center buildout. The memory crunch has led to incredible pricing power for Micron and its South Korean peers, Samsung and SK Hynix.
NASDAQ: MU
Key Data Points
The market reacted positively to the CEO of a major chipmaker forecasting that not only will the supply crunch continue, but it will get worse through next year.
Image source: Getty Images.
Micron stock also got a boost today from a broader rally across the stock market following an easing of bond yields and oil prices.
Micron's June 2026 results left little room for a slowdown
Micron reported fiscal third-quarter 2026 revenue of $41.46 billion and an incredible 84.6% GAAP gross margin last quarter. The company has forecast revenue of about $50 billion in its current quarter. We'll see the results on Sept. 30 when it reports again.
The key question is whether expectations have gotten ahead of the incredible numbers.
