Micron Posts $23.9B Revenue, 48.4% Margin on AI-Fueled Memory Surge
INTC•Micron’s revenue soared 196.3% year-over-year to $23.9 billion in the last quarter, driven by 207% DRAM and 169% NAND growth and yielding a 48.4% operating margin. The stock trades at a P/E of 47.7 and P/S of 19.8 as management can meet only 50–66% of customer orders.
1. Breakout Financial Performance
Micron delivered record quarterly revenue of $23.9 billion, up 196.3% year-over-year, with DRAM sales rising 207% and NAND sales climbing 169%, driving an operating margin of 48.4% as AI workloads surge.
2. Premium Valuation Metrics
Shares trade at a price-to-earnings ratio of 47.7 and a price-to-sales ratio of 19.8, reflecting investor expectations that AI demand will permanently elevate memory pricing above commodity levels.
3. Capacity Constraints and Demand
Management reports that current production can only satisfy roughly 50–66% of customer orders, signaling persistent tightness in DRAM and NAND supply that is expected to continue beyond 2026.
4. Strategic Customer Agreements
To secure long-term demand visibility, Micron signed its first five-year strategic customer agreement, locking in high-volume commitments and de-risking revenue fluctuations inherent in a historically cyclical market.
