Micron Reports Strong Earnings, Revenue Nearly Triples
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy NVDA?
Source: CNBC
- Significant Revenue Growth: Micron's latest quarter revenue reached $23.86 billion, nearly tripling from $8.05 billion a year earlier and exceeding analyst expectations of $20.07 billion, showcasing the company's robust performance amid surging AI-driven memory demand.
- Improved Profitability: Adjusted earnings per share stood at $12.20, well above the market expectation of $9.31, while gross margin soared from 36.8% a year ago to 74.4%, reflecting the high-margin advantage of high-bandwidth memory products.
- Optimistic Future Outlook: Micron anticipates revenue of approximately $33.5 billion for the upcoming quarter, representing over 200% growth from $9.3 billion a year ago, indicating strong demand and execution in the memory market.
- Increased Capital Expenditure: Micron plans to significantly ramp up capital expenditures in fiscal 2027, exceeding $10 billion for the construction of two large manufacturing campuses in Idaho and New York, aimed at enhancing memory production capacity in the U.S. and solidifying its market position.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 178.560
Low
200.00
Averages
264.97
High
352.00
Current: 178.560
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Growth Outlook: Wall Street analysts project Nvidia's revenue and earnings per share to grow at compound annual rates of 36.5% and 39.4% over the next three fiscal years, providing investors with confidence that could lead to further stock price increases.
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See More
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See More
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- Legal Risks Intensified: The U.S. Justice Department announced charges against three individuals connected to Supermicro for allegedly aiding in the illegal smuggling of $2.5 billion worth of U.S. AI technologies to China, which could significantly impact the company's reputation and future operations.
- Executives Involved: Among those charged are a board member and co-founder of Supermicro, raising serious governance concerns and potentially shaking investor confidence, which could exacerbate stock price volatility.
- Future Uncertainty: Although Supermicro has not been directly charged, the possibility of an expanded investigation by the Justice Department looms, and if Nvidia were to halt chip sales to Supermicro, it could have disastrous consequences for the company, leading to continued stock fluctuations until export issues are clarified.
See More
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- Export Scandal: Co-founder Wally Liaw is accused of being involved in a $2.5 billion illegal chip export scheme, allegedly working to bypass national security sanctions against China, which has heightened concerns about the company's compliance and governance.
- Customer Dependency Risk: With Nvidia as a major client, whose advanced chips are restricted from being sold to China, the sustainability of Super Micro's revenue, currently at $28 billion annually, is now in question, raising alarms among investors.
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See More
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- Outstanding Financial Performance: Nvidia reported fourth-quarter revenue of $68.1 billion for fiscal 2026, a 73% year-over-year increase, with net income of $39.5 billion, up 79%, and earnings per share of $1.82, an 82% gain, indicating robust performance in high-end computing and AI markets.
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See More
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- Stock Price Plunge: Following this news, Super Micro Computer's stock plummeted by 28.2% during Friday's trading, with a drop of up to 29% earlier in the session, reflecting growing investor anxiety about the company's future prospects and potentially leading to further declines in investor confidence.
- Supply Chain Risks: There is a looming risk that Nvidia may cease selling its advanced chips to Super Micro due to the Justice Department's investigation, and if this scenario materializes, it could have disastrous consequences for the server specialist, exacerbating market concerns about its future.
- Market Reaction: While the broader market is experiencing bearish momentum due to risks related to the war with Iran and inflation, Super Micro's stock decline is primarily driven by company-specific negative news, and it is expected that the stock will continue to see volatility until export issues are clarified.
See More
