Core Insights - Micron Technology's latest quarterly results are considered one of the biggest revenue and profit surprises in the U.S. chip industry, second only to Nvidia's performance [1] - The company has seen its stock increase by 109% over the past six months and 200% year-to-date [1] - Morgan Stanley raised its price target for Micron stock to $350 from $338, indicating a potential upside of nearly 38% from its trading price of around $254 [2] Financial Performance - Micron reported non-GAAP EPS of $4.78, beating consensus by $0.82, and revenue of $13.64 billion, exceeding estimates by approximately $760 million [19] - The guidance for Q2 FY2026 includes revenue of $18.7 billion ± $400 million, a gross margin of 67% ± 1% (GAAP), and EPS of $8.19 ± $0.20 (GAAP) [19] Market Position and Demand - Micron's guidance has reset expectations across the memory market, forecasting earnings of over $8 per share, which is roughly double market expectations due to strong AI demand [3][9] - The company is positioned as a critical player in the AI ecosystem, providing essential memory chips that support AI systems [4][5] - Micron's CEO indicated that the AI-driven memory shortage is expected to be a multi-year structural issue, with a total addressable market for high-bandwidth memory (HBM) projected to reach nearly $100 billion by 2028 [15] Competitive Landscape - Micron's EBIT margins are currently at 26%, significantly higher than the sector median, driven by strong pricing and disciplined capital spending [11] - The company has secured clients for its entire 2026 HBM supply, indicating that hyperscalers view memory as a strategic resource rather than a commodity [16] - Analysts have increased their price targets for Micron, with estimates ranging from $250 to $350, reflecting confidence in the tightening memory market and AI-driven demand [19]