Micron Technology: A financial report comparable to Nvidia at its peak!
Core data exceeds expectations across the board, fundamentals show no bubble
After the close of trading on Wednesday Eastern Time, global memory chip giant Micron Technology disclosed its Q1 2026 fiscal year results, with both revenue and profits surpassing market expectations. The financial report shows revenue of $13.64 billion for the period, up 57% year-over-year; net profit reached $5.482 billion, up 58% quarter-over-quarter and 135% year-over-year, demonstrating strong growth.
Profitability performance was outstanding, with gross margin reaching 56%, up 12 percentage points from the previous quarter, significantly higher than the market expectation of 51%. Across core metrics - revenue, profit, cash flow, and profitability - all four dimensions exceeded expectations.
Compared to the disclosed results, the earnings guidance drew even more market attention and similarly far exceeded expectations.
Micron expects next quarter revenue to be between $18.3-$19.1 billion, well above the $14.4 billion market expectation; adjusted EPS guidance of $8.22-$8.62 was nearly 80% higher than the $4.71 market expectation.
The company also projected forward 12-month EPS would reach $23.63, triple the $7.73 from the past 12 months.
The key focus is on cash flow, where the company's current cash flow size is significantly larger than net profit. Combined with the above core data, Micron's AI-tech-related financial report shows solid fundamentals with no bubble risk.
Morgan Stanley (Big Mo) commented that this earnings report is one of the most impressive in the history of the U.S. semiconductor industry, second only to Nvidia's peak performance.
Significant supply-demand gap, pricing power comparable to Nvidia at its height, seller's market dominates
The memory chip industry is currently in a super cycle, with high industry prosperity evidenced by Micron's supply rhythm and management's conference call statements.
Micron management repeatedly mentioned during the call that there is significant supply-demand imbalance in the current memory industry, and this situation will be difficult to alleviate in the short term. CEO Mehrotra stated: "We believe that in the foreseeable future, total industry supply will remain far below demand."
He expects this supply tightness to "continue through 2026 and beyond." During Q&A, he further emphasized with quantitative data: "From a medium-term perspective, we can only meet about 50% to two-thirds of demand from some key customers."
Just days ago, Micron formally notified partners that starting January 1, 2026, the change cycle for all orders will be extended from the original 30 days to 90 days. More importantly, any orders with delivery dates in 2026 will by default be non-cancelable, non-price-adjustable, and non-reschedulable.
In short, order adjustments will be nearly impossible starting 2026. The core reason for Micron's tough measures: the memory industry is experiencing rare supply shortages.
Additionally, company executives disclosed key information during the call: 2026 HBM product pricing and volumes have been finalized, with full-year capacity sold out; the total HBM addressable market is expected to reach $100 billion by 2028 ($35 billion in 2025), achieving this projection two years earlier than previously expected.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
