Micron Technology(US:MU) Invezz·2026-03-18 21:05Core Viewpoint - Micron Technology reported exceptional second-quarter earnings driven by strong demand for memory chips, particularly from AI and data center expansions, despite a decline in stock price due to broader market concerns [1][2]. Financial Performance - Adjusted earnings per share reached $12.20, significantly surpassing Wall Street's expectation of $9.19 [2]. - Revenue soared to approximately $23.9 billion, exceeding consensus estimates of around $20 billion and marking a nearly threefold increase from the same period last year [2][4]. - Net income rose to about $13.8 billion, with gross margins expanding to over 74% [4]. Demand Drivers - The demand for high-performance DRAM and NAND chips has outstripped supply, particularly for AI workloads and data centers, leading to increased volumes and pricing [3][5]. - Cloud memory revenue increased by over 160% to $7.75 billion, while mobile and client business revenue climbed to $7.71 billion from $2.24 billion a year ago [5]. Market Dynamics - Tight supply conditions in the memory market, especially in high-bandwidth memory (HBM), have supported pricing and margins, with no significant new capacity expected before mid-2027 [7][8]. - The imbalance between supply and demand has resulted in a sharp increase in memory prices, contributing to revenue growth and margin expansion [8]. Future Outlook - Micron provided strong forward guidance, expecting third-quarter revenue of about $33.5 billion, significantly higher than analyst estimates of around $24.3 billion [10]. - Adjusted earnings per share for the upcoming quarter are projected at approximately $19.15, well above expectations near $12 [10]. - A 30% increase in the quarterly dividend to 15 cents per share was also announced, indicating confidence in sustained demand for memory chips [10][11].