Micron Stock Is Soaring. Time to Buy?

Core Viewpoint - Micron Technology has reported record fiscal first-quarter results for 2026, with significant revenue and profit growth, raising questions about the sustainability of this momentum [1][2]. Revenue and Profit Growth - Micron's revenue for the fiscal first quarter reached $13.6 billion, marking a 57% year-over-year increase and a 21% increase from the previous quarter, following a 46% growth in the fourth quarter of fiscal 2025 [4]. - Non-GAAP earnings per share for the first quarter were $4.78, up from $3.03 in the fourth quarter of fiscal 2025 and $1.79 in the same quarter last year, indicating rapid improvement in profitability [5]. Guidance and Future Outlook - For fiscal Q2, Micron anticipates revenue of approximately $18.7 billion and a non-GAAP gross margin around 68%, suggesting over 130% year-over-year revenue growth compared to last year's $8.05 billion [6]. - CEO Sanjay Mehrotra highlighted the company's position as an "essential AI enabler," contributing to substantial records in revenue, gross margin, EPS, and free cash flow [7]. Capital Expenditures - Micron's capital expenditures rose to $4.5 billion in the quarter, up from about $3.1 billion a year earlier, although this growth rate was slower than revenue growth, which is not concerning [10]. Pricing and Demand Dynamics - Recent revenue growth has been primarily driven by price increases rather than shipment growth, which poses a risk if demand declines, potentially leading to lower prices and margins [11]. - Management expects strong demand conditions for Micron's products to continue beyond 2026 as AI data centers expand [12].