Wedbush has reiterated its bullish stance on technology stocks after Micron Technology Inc (NASDAQ:MU), the US memory chipmaker, delivered a quarter that the broker said should alleviate investor concerns over the sector.
Analyst Dan Ives said the results showed the memory and chip trade remained intact and was still in the early stages of playing out, with the artificial intelligence boom only in its third inning.
Micron reported third-quarter revenue of $41.5 billion, up 74% on the prior quarter and well ahead of the $35.9 billion expected by analysts.
Its data centre revenue has now reached an annualised run rate of about $100 billion, Wedbush noted.
Earnings per share came in at $25.11, more than double the previous quarter and ahead of the $20.86 consensus, while gross margin of 84.9% beat expectations.
Wedbush highlighted that demand for Micron's NAND and DRAM memory chips continued to significantly exceed industry supply, pointing to tight conditions and strong pricing power.
The company also signed 16 strategic customer agreements, 14 of which carry cumulative revenue of at least $100 billion over the term of the deals.
Guidance impressed the broker further, with Micron forecasting fourth-quarter revenue of $50 billion, against the $43.6 billion the market had expected.
Wedbush said the company expects tight supply conditions to persist beyond its 2027 financial year, with gross margin guided to about 86%.
Micron also said it intends to return all excess cash to shareholders as free cash flow builds.
Ives framed the results against rising nervousness over the AI trade, following recent weakness in South Korea's KOSPI index and renewed warnings from sceptics.
He argued the figures showed no cracks in AI demand across either hardware or software, giving what he called a green light to own the core technology winners into year-end.
The message from customers and chief information officers was clear, Ives said, with the pace of AI adoption accelerating and the focus shifting to launching enterprise use cases in the second half of 2026.
Wedbush said recent checks across Asia had reinforced its confidence, pointing to strong demand trends and a stronger growth trajectory ahead for the sector.
The broker rates Micron at outperform with a price target of $1,300, against a recent price of about $1,052.
Ives flagged risks, including a slowdown in enterprise IT spending, rapid technology disruption, rising competition across the AI stack, and geopolitical tensions between the United States and China that could disrupt the semiconductor supply chain
