Micron Tops Q1 with $13.64B Revenue, Guides Q2 $18.7B & Sold-Out HBM
Micron's fiscal Q1 revenue rose 56.7% YoY to $13.64B and non-GAAP EPS reached $4.78, beating estimates by 5.9% and 21.3%, with gross margin at 56.0%. Micron guided Q2 revenue of $18.7B with $8.42 EPS and highlighted sold-out HBM capacity through 2026, though its $316.13 price target suggests 21% downside.
1. Q1 Financial Performance
Micron reported fiscal Q1 revenue of $13.64 billion, a 56.7% increase year over year, with non-GAAP EPS of $4.78, surpassing consensus by 21.3%. GAAP gross margin expanded to 56.0%, and free cash flow reached a record $3.91 billion, reflecting strong profitability.
2. Q2 Outlook
The company guided second-quarter revenue of $18.7 billion and non-GAAP EPS of $8.42, indicating expectations of continued demand growth in memory and storage markets.
3. HBM Capacity and AI Demand
Micron’s high bandwidth memory (HBM) capacity is sold out through 2026, positioning it as a critical supplier for AI infrastructure. This constraint supports pricing power and underscores Micron’s role in high-performance computing applications.
4. Valuation and Risks
A price target of $316.13 suggests a 21.1% downside, reflecting a stretched valuation based on forward P/E. Investors face the risk of mean reversion even as fundamental drivers remain robust.