Micron Says ‘We Are More Than Sold Out.’ Should You Buy MU Stock After Earnings?

Core Insights - Micron Technology reported exceptional fiscal Q1 earnings, with revenue of $13.64 billion and adjusted earnings per share of $4.78, significantly surpassing Wall Street forecasts [3]. - The company is experiencing a supply-demand imbalance, particularly in high-bandwidth memory for AI applications, leading to a 10% increase in stock price and a 200% rise over the past year [1][3]. Financial Performance - Micron's Q1 revenue exceeded expectations by $0.8 billion, while earnings per share surpassed forecasts by $0.83 [3]. - For the upcoming quarter, Micron projects revenue of $18.70 billion and earnings of $8.42 per share, both significantly higher than consensus estimates [3]. Capital Expenditure and Market Outlook - The company raised its capital expenditure guidance to $20 billion for fiscal 2026, indicating confidence in future growth [4]. - Micron anticipates a total addressable market for specialized memory to reach $100 billion by 2028, reflecting an annual growth rate of 40% [4]. Supply Chain and Production Challenges - Micron's decision to halt direct sales to consumers highlights supply constraints as it focuses on AI infrastructure customers [5]. - The company is unable to meet the demand for high-bandwidth memory and conventional DRAM due to production bottlenecks stemming from physical limitations [6][7]. - Significant capacity expansion will not impact supply until fiscal 2027, as the company operates some of the largest and most complex factories globally [7].