Financial Data and Key Metrics Changes - The company achieved a 20% bit shipment growth in fiscal 2026, driven by efficiencies in existing fabs and node transitions [6][21] - Gross margin reached 68%, with expectations for gradual increases in the future due to strong demand and supply constraints [24][25][27] - Free cash flow margin was near 30% in the first quarter, with record-setting free cash flow reported [51][70] Business Line Data and Key Metrics Changes - DRAM pricing increased by 20% sequentially, while NAND pricing also saw significant growth [12][21] - The attach rate for high-capacity SSDs in AI servers is growing, with Micron leading in QLC workloads [18][19] Market Data and Key Metrics Changes - There is a substantial mismatch between supply and demand across all segments, including DRAM and NAND, with the data center segment seeing particularly high demand [13][14][30] - The company is experiencing challenges in meeting customer demand due to industry-wide supply constraints [13][57] Company Strategy and Development Direction - The company is focusing on diversifying its business across segments while prioritizing strategic customers [14][15] - Future growth is expected to tilt more towards the data center market, with ongoing investments in technology and capacity [15][56] Management's Comments on Operating Environment and Future Outlook - Management highlighted a generational change in technology driven by AI, which is expected to sustain demand for memory products [25][26] - The company is committed to maintaining technology leadership and ensuring adequate supply to meet customer needs [70][71] Other Important Information - The company plans to double construction CapEx from fiscal 2025 to 2026, indicating a strong commitment to expanding capacity [46][75] - The company has paid down $2.7 billion of debt in the first quarter and has returned to a net cash position [51][70] Q&A Session Summary Question: How has the company factored in bit shipments between NAND and Flash? - The company is working to increase bit supply and expects modest growth in bit shipments sequentially [6][7] Question: How does the company decide to allocate capacity between conventional DRAM and HBM? - The company is facing a significant demand-supply mismatch and is working to ensure adequate supply for all segments [13][14] Question: What is the outlook for gross margins moving forward? - Management indicated that gross margins could continue to rise due to strong demand and supply constraints [24][25][27] Question: How does the company manage wafer allocation between different product types? - The company can change wafer allocation within one process cycle time, but design stability is crucial for complex products like HBM [39][41] Question: What are the priorities for cash generation moving forward? - The company prioritizes reinvestment in the business, maintaining technology leadership, and strengthening the balance sheet [70][71]