Micron Q2 Revenue Triples with 60% DRAM, 70% NAND Price Gains Despite Retail Sell-Off
Retail investors cut MU holdings in March, offloading $1.6 billion of single stocks including Micron, as weekly retail inflows fell to $5.0 billion from a 12-month average of $6.9 billion. Micron’s Q2 revenue tripled year-on-year with DRAM prices up 60% and NAND up 70% sequentially, driving record gross margins and underlying EPS.
1. Retail Investor Sell-Off in March
Total retail purchases fell nearly 50% from January highs, with weekly inflows dropping to $5.0 billion versus a 12-month average of $6.9 billion. Single-stock selling led to $1.6 billion in offloads, with memory names Micron and Sandisk among the most sold.
2. Robust Q2 Financial Performance
Micron reported Q2 revenue up 3x year-on-year, driven by a sold-out memory supply. Sequential price gains of ~60% for DRAM and ~70% for NAND propelled gross margins and underlying EPS to record levels.
3. AI Bubble Concerns and Valuation Risks
Four key factors signal a potential AI bubble: unrealistic optimization timelines, unsustainable valuations (Palantir P/S at 86, Shiller P/E above 40), easing hardware scarcity, and possible Federal Reserve rate hikes due to inflation. Such headwinds could pressure memory demand and weigh on Micron’s outlook.