Micron Technology(US:MU) Huachuang Securities·2025-12-19 07:59Investment Rating - The report assigns a positive investment rating to Micron Technology (MU) based on strong performance and growth prospects in the memory and storage market [2]. Core Insights - Micron Technology reported record revenues in FY26 Q1, achieving $13.643 billion, a quarter-over-quarter increase of 20.6% and a year-over-year increase of 56.7%, surpassing guidance [2][12]. - The company’s Non-GAAP gross margin for FY26 Q1 was 56.8%, exceeding the upper limit of guidance due to effective pricing strategies and cost control [2][12]. - The data center segment saw significant growth, with revenues reaching $2.4 billion, driven by strong demand from AI data center expansions [3][24]. Summary by Sections 1. FY2026Q1 Performance Overview - Micron achieved record revenues across all business units, with DRAM and NAND revenues benefiting from strong end-market demand and effective pricing strategies [2][12]. - The company’s gross margin significantly improved, reflecting better pricing and cost management [2][12]. 2. Revenue Breakdown - DRAM revenue was $10.8 billion, accounting for 79% of total revenue, with a quarter-over-quarter growth of 20% and a year-over-year growth of 69% [16]. - NAND revenue reached $2.7 billion, representing 20% of total revenue, with a quarter-over-quarter growth of 22% [16]. - The data center business unit generated $2.4 billion, making up 17% of total revenue, with a 51% quarter-over-quarter increase [23]. 3. Company Guidance - For FY26 Q2, Micron expects revenues of $18.7 billion, a quarter-over-quarter increase of 37.1% and a year-over-year increase of 132.2% [6][28]. - The company anticipates a gross margin of approximately 68.0% for FY26 Q2, reflecting continued strong demand and effective cost management [6][28].