Micron Technology(US:MU) Zhi Tong Cai Jing·2025-12-18 00:37Core Viewpoint - Micron Technology (MU.US) has provided an extremely optimistic earnings outlook that significantly exceeds Wall Street analysts' expectations, indicating that the current "super cycle" in storage chips may extend until 2027 due to unprecedented demand driven by AI infrastructure [1][2] Earnings Outlook - For Q2 of fiscal year 2026, Micron expects revenue between $18.3 billion and $19.1 billion, surpassing the average analyst expectation of $14.4 billion [3][4] - Adjusted earnings per share are projected to be between $8.22 and $8.62, compared to the analyst average of $4.71 [3] - Micron's overall gross margin is expected to be 67.0% under GAAP, significantly higher than the analyst expectation of 55.7% [4] Capital Expenditure - Micron has raised its capital expenditure forecast for fiscal year 2026 from $18 billion to $20 billion, reflecting the need to expand production capacity in response to surging demand [5][9] Market Dynamics - The demand for storage chips, particularly DRAM and NAND products, is experiencing explosive growth due to the construction of large AI data centers, leading to a shift in production focus away from consumer markets [2][6] - Major players like SK Hynix and Samsung are also concentrating their production on high-bandwidth memory (HBM) systems, contributing to a supply shortage in traditional storage products [6][8] Industry Trends - TrendForce has revised its revenue forecasts for the DRAM industry, predicting a year-over-year growth of over 100% in 2026, with Micron positioned as a key beneficiary [2][11] - The semiconductor market is expected to grow significantly, with projections indicating a total value of $975.5 billion by 2026, driven by AI and cloud computing demands [13]