Micron reported first-quarter revenue of $13.6 billion, up 57% year-over-year, driven by surging demand for high-bandwidth memory (HBM) used in AI data centers and edge devices. Management confirmed that the company’s entire HBM output for calendar 2026 is fully committed under long-term contracts, underscoring the tight supply conditions in the advanced memory market and securing a clear revenue runway through next year.

The company posted a gross margin of nearly 57% in Q1 and projects margin expansion to approximately 68% in the second quarter as elevated pricing for memory chips persists. Despite a more than 260% stock gain over the past 12 months and a 39% increase year-to-date, Micron trades at a forward P/E near 12×, well below the semiconductor sector average and below multiples paid for peers with slower earnings growth forecasts.

To address the current supply-demand imbalance and support future sales, Micron has earmarked over $200 billion in capital expenditures to expand its U.S. manufacturing footprint, including facility upgrades in Virginia and new fabs in Idaho and New York. The company also executed a letter of intent to acquire a Taiwanese fabrication site for $1.8 billion, positioning it to ramp production of next-generation DRAM and HBM volumes over the coming years.

Institutional ownership remains high, with funds such as Avidian Wealth Enterprises adding new positions during the third quarter. Insider share sales have been limited to portfolio diversification, representing under 0.25% of total shares outstanding, while dividend payouts and a $1 billion share repurchase program signal management’s confidence in sustained free-cash-flow generation and shareholder returns.