Key facts
- Micron's stock has rebounded over 40% from its July 29 low, adding $370 billion to its market cap.
- The company reported record Q1 fiscal 2026 revenue of $13.64 billion, up 57% year-over-year.
- Adjusted earnings per share were $4.78, significantly beating analyst estimates of $3.95.
- Micron's HBM supply for 2026 is fully sold out due to AI demand acceleration.
- The HBM market is projected to grow to $100 billion by 2028, a 40% CAGR.
- Micron raised its fiscal 2026 capital expenditure to $20 billion to boost HBM and DRAM capacity.
Micron Technology reported a record-setting fiscal first-quarter 2026, exceeding Wall Street estimates across DRAM, NAND, high-bandwidth memory (HBM), and data center segments. The company's stock has surged over 40% from its July lows, adding approximately $370 billion to its market capitalization, driven by strong demand for AI infrastructure.
Revenue reached a record $13.64 billion, a 57% year-over-year increase, while adjusted earnings per share came in at $4.78, significantly surpassing the analyst consensus of $3.95. CEO Sanjay Mehrotra attributed the strong performance to AI demand acceleration, noting that Micron has fully sold out its 2026 HBM supply. The company forecasts the HBM market will grow to approximately $100 billion by 2028, representing a 40% compound annual growth rate.
Micron also increased its fiscal 2026 capital expenditure plan to $20 billion from $18 billion to expand HBM and advanced DRAM production capacity. Despite ongoing concerns about an AI bubble, these results indicate robust underlying demand for AI semiconductors. The company's stock is trading at about 7 times its forward price-to-earnings ratio, below its two-year average of 10 times and the S&P 500's 19 times, partly due to cyclical risks in the memory industry.