Micron reported first-quarter fiscal 2026 revenue of $13.6 billion, up 56% year-over-year, driven by record pricing for both DRAM and NAND products. The company’s non-GAAP gross margin jumped from 38.5% in the year-ago quarter to over 56%, with its Cloud Memory Business Unit (CMBU) division delivering $5.28 billion in revenue at a 66% gross margin. Its Automotive and Embedded Business Unit (AEBU) generated $1.7 billion, representing 13% of total revenue and marking a new record for that segment.

Micron’s leadership in high-bandwidth memory (HBM3 and HBM4E) has made it a critical supplier to AI accelerator makers. Persistent bottlenecks in HBM production—where each module requires 2.5× more wafer capacity than standard DRAM—have kept spot pricing elevated. Executive Vice President Manish Bhatia described the shortage as "unprecedented," and Micron’s capacity utilization is running at near-maximum levels, supporting continued pricing power and scarcity-driven profits.

Trading at a forward P/E just over 11×, Micron’s EPS is projected to reach $33 in fiscal 2026 and $41.50 in 2027, undergirding a $430 per-share fair value target. The company has earmarked $20 billion in capital expenditure for the year—up from $18 billion—to expand DRAM and HBM capacity. This includes a $1.8 billion letter of intent to acquire the P5 fab site from PSMC in Taiwan (expected online in H2 2027) and two new fabs in New York and Idaho, positioning Micron to meet surging AI memory requirements through the end of the decade.