TLDR:
- Micron (MU) stock soars 10% after AI-driven Q1 results beat expectations.
- Micron’s strong Q1 results boost stock, with a positive outlook for 2026.
- Micron shares jump 10% as AI demand drives record earnings and revenue.
- Micron’s strong Q1 earnings and AI forecast propel stock to new heights.
- Micron (MU) beats earnings estimates, raises outlook amid AI memory boom.
Micron Technology (MU) stock surged 10.12%, closing at $248.55, following a strong earnings report for Q1 2026.
Micron Technology, Inc., MU
Despite a slight after-hours decline of 0.38% to $247.60, Micron’s performance exceeded Wall Street’s expectations. This increase came as the company benefitted from heightened demand for memory chips driven by AI data centers.
Micron’s Strong Q1 Results Surpass Wall Street Expectations
Micron reported $13.64 billion in revenue for Q1 2026, exceeding analyst expectations of $12.91 billion. The company’s adjusted earnings per share (EPS) came in at $4.78, far surpassing the projected $3.96. DRAM revenue saw a substantial increase of 69%, reaching $10.8 billion, reflecting a significant surge in AI-related demand for high-bandwidth memory (HBM).
The growth was not limited to DRAM, as Micron also saw its NAND revenue, used in data centers, exceed $1 billion for the first time. This strong performance is attributed to the ongoing expansion of AI-driven data centers, which are relying more on Micron’s memory solutions. The company’s ability to meet the rising demand for both DRAM and NAND contributed to its better-than-expected earnings.
Micron’s Outlook Remains Strong Amid Rising AI Demand
Looking ahead, Micron raised its guidance for Q2 2026, forecasting revenue between $18.3 billion and $19.1 billion, well above Wall Street’s estimate of $14.4 billion. The company also projects its EPS for the second quarter to reach $8.42, a significant increase from the $4.71 analysts expected. Micron’s gross margin is expected to hit a record high of 68%, further bolstering its growth prospects.
CEO Sanjay Mehrotra expressed optimism about the long-term potential of Micron’s business, particularly in the AI market. He highlighted that the company expects the demand for high-bandwidth memory (HBM) to grow significantly, forecasting the market to reach $100 billion by 2028, up from $35 billion in 2025. Micron’s strong results and positive outlook are largely driven by favorable industry conditions and a memory chip shortage, which continues to impact various sectors, including smartphones and data centers.
Micron’s stock has risen more than 160% this year. Analysts have raised their price targets on Micron’s shares, with some projecting the stock could reach as high as $500. As the company continues to benefit from industry demand, its position in the memory chip market appears set for further expansion.
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