After its fiscal 2021 third quarter earnings report, all doubts about Micron Technology's (NASDAQ:MU stock) ability to deliver the incredible upside Wall Street expects were dispelled.Analysts were pleasantly surprised by Micron's performance, which was solidly guided and indicated that the memory market would continue to be in good health due to strong demand. Micron suggested that the days of Micron's phenomenal growth are over. Let's look at why this may be true and why you should consider buying the stock, if not already.Micron Technology once again delivers exceptional growthMicron Technology's Q3 revenues jumped 36.5% year-over-year to $7.4 Billion, exceeding the $7.3 billion mark in the company's original guidance. Non-GAAP earnings for the chipmaker jumped to $1.88 per sen, up from $0.82 in the previous-year period. This was significantly higher than its original guidance of 1.62 per share.Wall Street expected Micron to report earnings of $1.72 per share on $7.23 billion revenue. However, strong memory demand and pricing enabled it to surpass those estimates. Micron's DRAM revenue (dynamic random access memory), increased by 23% and 52% respectively quarter-over-quarter. This segment accounted for 73% of Micron’s total revenue. It also saw a 20% increase in average selling price (ASP), and a low single-digit rise in bit shipments.Micron's NAND flash business, which accounted for 24% total revenue, also saw strong growth. Segment revenue grew 10% quarter-over-quarter and 9% year-over-year, thanks to a significant percentage bump in the ASP as well as a decrease in bit shipments. Micron's gross margin also saw a significant boost from the improved pricing. Micron's adjusted gross margin increased from 33.2% in its previous quarter to 42.9% during Q3.Micron's fourth quarter guidance is impressive as well. Micron anticipates an $8.2 Billion in revenue at midpoint of its guidance range. Adjusted earnings will be $2.30 per share. Micron expects 47% adjusted gross margin for this quarter, plus or minus one percentage point. Non-GAAP gross margin was 34.9% for the company in the previous-year period. Earnings were $1.08 per share.Micron's earnings are expected to increase by more than three times this quarter, thanks to a 35% jump in the top line compared to the previous year. The company is still able to exceed its expectations as the memory demand from its end market continues to grow.The overall picture points to sustained high levels of growthMicron Technology has five markets for its business: data center, personal computers (PC), graphics and mobile. Multiple factors are responsible for increasing memory consumption in these markets.Micron is seeing a tailwind in the demand for solid-state drives (SSDs), faster DRAM, and solid state drives (SSDs), in the data center market. According to Micron, "new CPUs with more memory channels will accelerate server storage demand beginning later in the year and continuing into CY22." According to a third-party study, the SSD market will grow by nearly 15% annually through 2026.As the market's coronavirus-related momentum will not be slowing down, the increasing demand for SSDs is also helping to boost the SSD market. NVIDIA, AMD, and other manufacturers are working together to increase production to meet the huge demand for DRAM in graphics cards.Micron's mobile business has been reenergized by the advent of 5G smartphones. The company's mobile business unit saw a 31% increase in revenue last quarter, to $2 billion. This segment's rapid growth is likely to continue for a very long time, considering 5G smartphone sales will be even higher.Finally, Micron achieved a record $1.1 million in embedded revenue growth of 64% over the previous year. This impressive growth is attributed to Micron's record revenue in both the automotive and industrial markets. It's a trend that will likely continue in the future. According to third-party estimates automotive memory demand is growing at 24% per year, and semiconductor deployments in the industrial space will continue being a tailwind.Micron expects DRAM bit demand to grow in the mid-to high teens over the long-term because of these multiple tailwinds. With a long-term compound annual growth rate (CAGR) of 30%, the NAND demand forecast looks brighter. Analysts expect Micron's earnings growth to exceed 63% annually over the next five year. This makes it a top-growth stock that you should buy now, considering it trades at 8.3 times its forward earnings, compared to the average five-year multiple of 11.2x.
