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

"Micron's performance set several company records. Revenue of $13.64 billion, up 57% year-over-year from $8.71 billion, was a record high, while adjusted earnings reached $4.78 per share, substantially exceeding analyst estimates of $3.95 per share. CEO Sanjay Mehrotra noted that AI demand acceleration fueled its results, with the company fully selling out its 2026 HBM supply, including advanced HBM4 nodes."

"Across all aspects of Micron's business - DRAM, NAND, high-bandwidth memory (HBM), and data centers - the company saw unprecedented growth . Revenue, operating cash flows, and margins of all business units expanded, driven by strong demand for HBM and other products used in AI applications. Micron also significantly raised its outlook far above consensus expectations. Despite ongoing concerns about an AI bubble, these results demonstrate robust underlying demand, indicating the AI boom remains firmly intact."

"The company generated record operating cash flow of $8.41 billion and achieved margin expansion across all business units, guiding for second-quarter revenue of approximately $18.7 billion and adjusted earnings of about $8.42 per share. Micron forecasts the HBM market will grow at a 40% compound annual rate through 2028, reaching approximately $100 billion, almost triple the $35 billion in 2025."

Micron posted record fiscal first-quarter 2026 results with revenue of $13.64 billion, a 57% year-over-year increase, and adjusted earnings of $4.78 per share, beating estimates. GAAP net income was $5.24 billion ($4.60 per share), and operating cash flow reached $8.41 billion. Management guided second-quarter revenue near $18.7 billion and adjusted EPS around $8.42. Micron sold out its 2026 HBM supply, including advanced HBM4 nodes, and forecasted a 40% CAGR for the HBM market to about $100 billion by 2028. Fiscal 2026 capital expenditure was raised to $20 billion to expand HBM and advanced DRAM capacity amid constrained supply, and the company expects to meet only part of customer demand in key segments.

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