Micron Q2 Revenue Soars 196% to $23.9 B, Yet Shares Drop 7%
Micron reported fiscal Q2 revenue of $23.9 billion, up 196% year-over-year, with gross margin expanding to 74.9% and EPS of $12.20 before forecasting Q3 revenue of $33.5 billion and margins near 81%. Despite these gains, shares fell about 7% on concerns over unsustainable pricing and a potential 30%–50% cyclical downturn.
1. Record Q2 Performance
For its fiscal second quarter ended in late February, Micron posted revenue of $23.9 billion, up 196% from a year earlier. Gross margin expanded to 74.9% from 36.8%, and earnings per share reached $12.20, driven by robust AI‐driven memory demand and structural supply constraints.
2. Strong Q3 Guidance
The company forecasts fiscal third-quarter revenue of approximately $33.5 billion and gross margins near 81%, citing continued momentum in data center and AI workloads alongside tight industry supply conditions.
3. Market Sell-Off Despite Beats
Shares tumbled about 7% despite the beat-and-raise, as investors questioned the sustainability of current pricing power and noted that Micron’s forward price-to-earnings ratio of around eight may signal a cyclical peak.
4. Downside Risk Assessment
Analysts warn that if the memory cycle turns and end‐market demand cools, Micron could face further downside of 30% to 50%, though others remain optimistic about persistent AI investment driving long-term growth.