Micron Technology Reports Significant Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy MU?
Source: Yahoo Finance
- Significant Revenue Growth: Micron Technology reported second-quarter fiscal 2026 revenue of $23.9 billion, a remarkable 196% increase year-over-year, indicating strong demand and an increase in market share within the memory chip sector.
- Record Gross Margins: The company achieved gross margins exceeding 70%, a figure that seemed implausible just three years ago, highlighting Micron's enhanced competitiveness in the high-end memory market, which may attract more investor interest.
- Low Market Valuation: Despite Micron's forward P/E ratio of 7.4, significantly below the semiconductor industry's median of 30, the market may be applying a risk discount due to concerns over the cyclical nature of the memory industry, reflecting cautious sentiment about future growth.
- Strong Cash Flow: Micron's balance sheet is robust, with a debt-to-equity ratio of 0.14 and cash reserves of $14.6 billion, indicating the company's strong financial flexibility for future investments and expansion opportunities.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 724.660
Low
235.00
Averages
336.12
High
500.00
Current: 724.660
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
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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- Rapid Revenue Growth: Micron's quarterly revenue surged from $13.6 billion two quarters ago to $23.9 billion last quarter, with management projecting $33.5 billion for the next quarter, reflecting robust demand and pricing power in the memory chip market.
- Memory Shortage Situation: A global shortage of memory chips, particularly driven by surging demand from AI data centers, has led to skyrocketing prices, further enhancing profit margins for Micron and its competitors.
- Optimistic Future Outlook: Management indicated that current production capacity can only meet half to two-thirds of total demand, with the data center memory market expected to grow from $35 billion in 2025 to $100 billion in 2028, highlighting Micron's significant growth potential.
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- Investment Opportunities: With the rapid advancement of AI technology, the demand for memory chips is expected to continue growing, presenting potential investment opportunities for companies like Micron and SanDisk, which could be smart additions to investors' portfolios.
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- Capacity Expansion Challenges: Mosley highlighted at the JPMorgan conference that increasing production capacity takes time, and shifting teams to new factories or machines could slow technological growth, revealing the strategic dilemmas the company faces in responding to surging demand.
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- Market Outlook: With a surge in AI investments, demand for memory chips has skyrocketed, and CME Group's plans to launch a new semiconductor futures market will allow traders to lock in prices and hedge against rising computing power costs, highlighting the market's keen focus on the future of memory chips.
See More
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- SpaceX Major Investment: SpaceX's significant investment in Terafab signals its intent to expand in the infrastructure sector; although the investment amount was not disclosed, this move could enhance its competitiveness within the space industry supply chain.
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- Overall Market Reaction: The market dynamics mentioned in the video reflect a high level of investor interest in technology and innovation, and although the overall market sentiment is neutral, there remains an optimistic outlook on the potential growth of tech stocks.
See More
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- Market Value Milestone: Micron Technology, currently valued at approximately $900 billion, is just a 10% stock price increase away from joining the $1 trillion market value club, with its recent strong stock performance suggesting this milestone could be reached within days.
- Rapid Revenue Growth: Micron's quarterly revenue surged from $13.6 billion two quarters ago to $23.9 billion last quarter, with management projecting $33.5 billion for the next quarter, reflecting robust demand and pricing power in the memory chip market.
- Memory Shortage Situation: A global shortage of memory chips, particularly driven by surging demand from AI data centers, has led to skyrocketing prices, further enhancing profit margins for Micron and its competitors.
- Optimistic Future Outlook: Management indicated that current production capacity can only meet half to two-thirds of total demand, with the data center memory market expected to grow from $35 billion in 2025 to $100 billion in 2028, highlighting Micron's significant growth potential.
See More
Micron Technology Upgraded Amid AI Boom, Intel Faces Cautious Outlook
- Micron Upgrade: Driven by unprecedented AI infrastructure investment and soaring demand for high bandwidth memory, Micron Technology (MU) has been upgraded to Buy by JR Research, with capital expenditures projected to exceed $1.6 trillion by 2031, providing long-term revenue visibility for the company.
- FedEx Risk/Reward Improvement: FedEx (FDX) has seen its rating upgraded from Sell to Hold following the upcoming freight spin-off in June 2026 and recent cost-cutting measures, although the analyst notes that much of the potential upside has already been priced in by the market.
- Intel's Cautious Outlook: After a massive 393% rally since early 2025, Intel (INTC) has been downgraded to Hold by Oriental Trader, as the analyst believes that most of the turnaround optimism is already reflected in the $546 billion market cap, limiting future business improvement potential.
- Criteo Faces Challenges: Criteo (CRTO) has been downgraded to Neutral due to weakened client media spending and a significant cut in full-year guidance, with the analyst highlighting that despite the company's cheap valuation and new product integrations, the advertising landscape's weakness overshadows its prospects.
See More
Memory Chip Manufacturers See Stock Surge
- Market Shift: While the focus on AI infrastructure primarily revolves around GPUs and CPUs, memory chip manufacturers like Micron and SanDisk saw significant stock price increases on May 14, 2026, indicating strong market interest in memory chip demand.
- Investment Opportunities: With the rapid advancement of AI technology, the demand for memory chips is expected to continue growing, presenting potential investment opportunities for companies like Micron and SanDisk, which could be smart additions to investors' portfolios.
- Industry Outlook: The robust performance of the memory chip market reflects a recovery in the overall tech sector, particularly driven by AI and data center demand, with expectations for even more significant growth in the coming years.
- Stock Performance Analysis: As of May 14, 2026, Micron and SanDisk's stock prices rose by 7.91% and 8.58%, respectively, indicating that investors are optimistic about these companies' future performance, which may attract more capital inflow.
See More
Seagate and Memory Chip Stocks Plummet Amid Demand Concerns
- Demand Concerns Trigger Selloff: Shares of memory chip makers including Seagate, Micron, and SanDisk have seen significant declines, with Seagate dropping over 8%, Micron down 5%, and SanDisk around 7%, primarily due to CEO Dave Mosley's comments about the inability to meet soaring AI-driven demand, which has shaken market confidence.
- Capacity Expansion Challenges: During the JPMorgan conference, CEO Mosley highlighted that while demand is surging, building new factories and bringing in new machines would take too long, potentially slowing the growth rate of technology, leading investors to question the sustainability of future capacity.
- AI Investment Fuels Market Volatility: The recent surge in AI investments has significantly increased demand for memory chips, yet the extended production cycles raise investor concerns about how long leading memory manufacturers can capture this demand, contributing to a bearish market sentiment.
- New Futures Market Development: CME Group's launch of a new futures market for semiconductors allows more traders to lock in prices and hedge against rising computing power costs, which may help mitigate volatility in the memory chip market.
See More
Samsung Strike Looms, Impacting Memory Stocks
- Market Reaction: Seagate's shares fell over 8% on Monday, triggering a sell-off across memory stocks, primarily due to CEO Dave Mosley's concerns about the inability to meet soaring demand driven by AI buildout, indicating market anxiety over memory chip supply.
- Capacity Expansion Challenges: Mosley highlighted at the JPMorgan conference that increasing production capacity takes time, and shifting teams to new factories or machines could slow technological growth, revealing the strategic dilemmas the company faces in responding to surging demand.
- Competitor Performance: Micron's shares dropped 5%, while SanDisk and Western Digital saw declines of about 7%, reflecting industry-wide unease about future demand and investor skepticism regarding leading memory makers' ability to sustain demand capture.
- Market Outlook: With a surge in AI investments, demand for memory chips has skyrocketed, and CME Group's plans to launch a new semiconductor futures market will allow traders to lock in prices and hedge against rising computing power costs, highlighting the market's keen focus on the future of memory chips.
See More
Market Recap: ARM, Shift4 Earnings, and SpaceX Investment
- ARM and Shift4 Earnings Reaction: The earnings reactions of ARM and Shift4 have drawn market attention, and while specific financial data was not disclosed, investor expectations for future growth potential remain strong, indicating sustained interest in tech stocks.
- SpaceX Major Investment: SpaceX's significant investment in Terafab signals its intent to expand in the infrastructure sector; although the investment amount was not disclosed, this move could enhance its competitiveness within the space industry supply chain.
- Anthropic Compute Deal: The massive compute deal between Anthropic and Colosus 1, while specific terms were not revealed, is expected to significantly boost its AI model training capabilities, further solidifying its market position in artificial intelligence.
- Overall Market Reaction: The market dynamics mentioned in the video reflect a high level of investor interest in technology and innovation, and although the overall market sentiment is neutral, there remains an optimistic outlook on the potential growth of tech stocks.
See More
