Zhi Tong Cai Jing·2025-12-22 07:00Core Viewpoint - Micron Technology (MU.US) reported FY26Q1 earnings that exceeded market expectations, driven primarily by growth in AI server demand and an increase in SSD capacity per server [1][2] Financial Performance - For FY26Q1, Micron achieved revenue of $13.6 billion, representing a year-over-year increase of 57% and a quarter-over-quarter increase of 21%. The gross margin was 57%, up 11 percentage points quarter-over-quarter, with a net profit of $5.5 billion, reflecting a year-over-year increase of 169% and a quarter-over-quarter increase of 58%, resulting in a net profit margin of 40% [1] Product Breakdown - DRAM revenue was $10.8 billion, accounting for 79% of total revenue, with a year-over-year increase of 69% and a quarter-over-quarter increase of 20%. NAND revenue was $2.7 billion, making up 20% of total revenue, with a year-over-year and quarter-over-quarter increase of 22%. The demand for AI servers is a key driver, with cloud storage revenue reaching $5.5 billion, doubling year-over-year and increasing by 16% quarter-over-quarter [2] Capital Expenditure and Market Outlook - Micron's capital expenditure for FY26 is projected to exceed $20 billion, primarily to support HBM and 1-gamma chip production. The HBM market is expected to grow from approximately $35 billion in 2025 to around $100 billion by 2028 [3] Industry Trends - The storage market is benefiting from AI demand, with expectations of a strong upward cycle in the storage industry. According to TrendForce, DRAM contract prices are expected to increase by 18-23% quarter-over-quarter in Q4 2025, driven by the expansion of data centers by global cloud service providers [4] Investment Opportunities - The current market represents a new cycle for storage chips, with high growth in AI server demand and domestic substitution. Investment opportunities are seen in related listed companies in the domestic storage industry chain, including IC design firms and storage module manufacturers [5]