Published：Jun 17, 16:00Last updated：Jun 29, 03:00

Chipmakers Ride AI Boom with Record Earnings and Long-Term Deals

Jun. 17, 2026 16:00

Deutsche Bank has raised its target price for Micron Technology to $1,500, citing strong demand for memory chips due to AI applications. The bank expects the supply-demand imbalance to continue through 2026-2028, supporting stock prices. Micron is set to release its Q3 earnings on June 24, with analysts forecasting revenue of $35.1 billion, above previous expectations.

Summarized

23News

8Media

Jun. 25, 2026 16:18

European stocks, including the FTSE 100, rose as the Dow Jones reached a record high. Micron Technology surged 11% due to strong demand for AI-related memory bandwidth. The market outlook improved amid falling oil prices and positive economic signals.

Jun. 29, 2026 03:00

Shares in chipmakers have surged in the first half of 2026, driven by the AI boom. Some manufacturers' values have tripled or more, boosting Asia Pacific stock markets. Investors have favored semiconductor and memory chip companies over large software firms this year. The demand for hardware supporting AI technologies has led to soaring profits for these chipmakers. This trend reflects the growing importance of AI in global markets.

Major memory chip manufacturers Micron, Samsung, and SK Hynix are pursuing long-term AI deals to stabilize their businesses and avoid traditional industry volatility, as revealed in recent strategic discussions. This comes as Micron Technology reported staggering third-quarter earnings with revenue skyrocketing 346% year-over-year to $414.6 billion, far surpassing analyst expectations. The AI-fueled demand for memory chips has transformed the company into a market leader, with its stock surging 300% this year and gaining another 13% in after-hours trading following the announcement. Reuters+2

📈 Record-Breaking Performance

Micron's data center revenue jumped over 667%, while gross margins reached an unprecedented 84.9%. The company attributed this performance to soaring demand for high-bandwidth memory (HBM) chips used in AI processors, particularly those paired with Nvidia's products. Customers have committed $22 billion in advance to secure future supply, reflecting severe industry shortages that analysts predict will last until at least 2027. China.org+2

💰 Financial Sector Reactions

Investment banks have significantly raised Micron's target price, with JPMorgan setting it at $1540 and Deutsche Bank at $1500, citing persistent supply-demand imbalances. The bank projects these conditions will continue through 2026-2028. Micron's net profits are now second only to Nvidia in the semiconductor sector, with the US government recently awarding the company $6.1 billion in grants and $7.5 billion in loans to expand domestic production. China.org+2

🌍 Global Market Impact

The earnings report stabilized European markets after a tech selloff, with Micron's stock surging 11% and helping push the Dow Jones to record highs. The broader semiconductor sector has seen shares triple in value during 2026's first half as investors favor hardware companies supporting AI technologies over traditional software firms. The Independent+2

⚠️ Supply Chain Challenges

CEO Sanjay Mehrotra warned that supply shortages could persist beyond 2027 despite capacity expansions. The company faces challenges meeting demand for chips used in AI infrastructure, with production bottlenecks expected to continue. This outlook has led to increased volatility in semiconductor stocks as investors weigh long-term growth against short-term constraints. China.org+2

NvidiaQualcommDeutsche BankSanjay MehrotraMicron Technology