Micron Earnings: I Was Worried For Nothing (Rating Upgrade) (NASDAQ:MU) - Seeking Alpha

Micron Technology delivered an exceptional Q3 earnings report, with revenue soaring 346% year-over-year to $41.46B, gross margins reaching 84.6%, and operating margins at 80.4%. These results were dri... Read original →

Micron’s blowout Q3 results reflect the structural surge in AI-driven HBM demand, not a cyclical rebound. Technically, HBM3E/HBM4 adoption is now mandatory for AI accelerators, straining TSMC’s CoWoS capacity and inflating BOM costs for NVIDIA and META. While U.S. export controls temporarily shield Micron, long-term margin pressure looms as SK Hynix scales HBM3E and Samsung ramps HBM4—forcing Micron to accelerate Arizona fab ramp. Crucially, $100B in take-or-pay contracts de-risks capex and locks in AI memory dominance. Over the next 12–24 months, AI server memory could exceed 50% of high-end DRAM revenue, cementing Micron’s position in a winner-takes-most market defined by technology inflection, not inventory cycles.