Is Micron Stock a Buy After Q1 Earnings?

Core Viewpoint - Micron Technology has reported strong first-quarter results for fiscal 2026, indicating improving fundamentals and broad-based demand for its memory and storage products, leading to a positive market reaction with shares rising approximately 9.6% in pre-market trading [1] Group 1: Financial Performance - In the first quarter of fiscal 2026, Micron reported revenue of $13.6 billion, representing a 21% sequential increase and a 57% year-over-year growth [6] - DRAM revenue reached a record $10.8 billion, up 69% year-over-year and 20% sequentially, driven by a 20% increase in average selling prices despite modest bit shipment growth [6] - NAND also achieved a record quarter with revenue of $2.7 billion, reflecting a 22% year-over-year and sequential growth, supported by mid- to high-single-digit increases in bit shipments and mid-teens pricing improvements [7] Group 2: Market Drivers - The expansion of artificial intelligence (AI) data centers is a significant driver of demand for Micron's high-performance, high-capacity memory solutions [2] - The industry is experiencing tighter supply conditions, which are contributing to higher memory pricing, positively impacting Micron's profitability [3] - With the combination of AI-driven infrastructure spending and a favorable pricing environment, Micron is well-positioned to sustain revenue growth and enhance profitability [4]