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

Core Insights - Micron Technology reported record-setting fiscal Q1 2026 results, significantly exceeding Wall Street estimates [3][4] - The company experienced unprecedented growth across all business segments, driven by strong demand for high-bandwidth memory (HBM) and products used in AI applications [4][5] Financial Performance - Micron achieved record revenue of $13.64 billion, a 57% increase year-over-year from $8.71 billion, and adjusted earnings of $4.78 per share, surpassing analyst estimates of $3.95 per share [7][10] - The company generated record operating cash flow of $8.41 billion and reported GAAP net income of $5.24 billion, or $4.60 per share [9][10] Market Outlook - Micron raised its fiscal 2026 capital expenditure plan to $20 billion from a previous estimate of $18 billion to expand HBM and advanced DRAM production capacity [9][10] - The HBM market is projected to grow at a 40% compound annual growth rate through 2028, reaching approximately $100 billion, up from $35 billion in 2025 [8][10]