Did Micron’s Blowout Quarter Just Smash AI Bubble Worries?

• Micron Technology (MU) reported grounds Q1 gross of $13.64B (up 57% year-over-year) and net of $4.78 per share. Micron afloat sold retired its 2026 HBM supply.

• Micron raised superior expenditure plans to $20B from $18B to grow HBM and precocious DRAM accumulation capacity.

• The HBM marketplace is forecast to turn astatine a 40% yearly complaint done 2028 to scope $100B from $35B successful 2025.

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Micron Technology (NASDAQ:MU) reported its fiscal first-quarter 2026 results yesterday aft the marketplace closed and delivered a record-setting performance, portion besides trouncing Wall Street's estimates.

Across each aspects of Micron's concern -- DRAM, NAND, high-bandwidth representation (HBM), and information centers -- the institution saw unprecedented growth. Revenue, operating currency flows, and margins of each concern units expanded, driven by beardown request for HBM and different products utilized successful AI applications. Micron besides importantly raised its outlook acold supra statement expectations.

Despite ongoing concerns astir an AI bubble, these results show robust underlying demand, indicating the AI roar remains firmly intact.

The institution generated grounds operating currency travel of $8.41 cardinal and achieved borderline enlargement crossed each concern units, guiding for second-quarter gross of astir $18.7 cardinal and adjusted earnings  of astir $8.42 per share.

Micron's  show acceptable respective institution records. Revenue of $13.64 billion, up 57% year-over-year from $8.71 billion, was a grounds high, portion adjusted net reached $4.78 per share, substantially exceeding expert estimates of $3.95 per share. CEO Sanjay Mehrotra noted that AI request acceleration fueled its results, with the institution afloat selling retired its 2026 HBM supply, including precocious HBM4 nodes.

Micron forecasts the HBM marketplace volition turn astatine a 40% compound yearly complaint done 2028, reaching astir $100 billion, astir triple the $35 cardinal successful 2025.

The representation chipmaker reported GAAP nett income of $5.24 billion, oregon $4.60 per share, and operating currency travel of $8.41 billion. Micron besides accrued its fiscal 2026 superior expenditure program to $20 cardinal from a anterior $18 cardinal estimation to grow HBM and precocious DRAM accumulation capacity. Supply remains constrained, though, with Micron expecting to conscionable lone portion of lawsuit request successful cardinal segments contempt its efforts to ramp output.

Micron's results basal successful opposition to pressures seen elsewhere successful the AI sector, suggesting the scenery is diverging into 2 camps. On 1 side, chipmakers similar Micron, Nvidia (NASDAQ:NVDA), and Advanced Micro Devices (NASDAQ:AMD) proceed to payment from outsized request for semiconductors indispensable to AI grooming and inference. High-bandwidth representation and graphics processors stay successful abbreviated supply, supporting elevated pricing and profitability.