Micron posts better-than-expected Q2 results and Q3 guidance

Micron (MU) reported 2nd 4th net aft the closing doorbell connected Wednesday that bushed expectations connected the apical and bottommost lines, but shares fell aboriginal Thursday arsenic the stock's caller rally cooled.

Its 3rd 4th guidance besides came successful good supra estimates arsenic the AI marketplace continues to thrust monolithic request for representation chips astir the world. Micron banal fell 3% aboriginal Thursday.

For the quarter, Micron reported net per stock (EPS) of $12.20 connected gross of $23.86 billion. Wall Street was anticipating EPS of $9.00 connected gross of $19.7 cardinal twelvemonth implicit year.

Memory, oregon RAM, is an integral constituent of information halfway servers for some GPU-based systems by Nvidia (NVDA) and CPU-based systems by the likes of Intel (INTC) and Advanced Micro Devices (AMD).

The detonation successful AI grooming and inferencing and the broader propulsion into agentic AI are driving a shortage of representation supplies, raising prices and impacting the outgo of user and endeavor electronics.

In February, marketplace probe steadfast Gartner said the representation shortage volition origin PC shipments to driblet 10.4% successful 2026 and smartphone shipments to diminution 8.4%.

Prices connected those products volition besides summation 17% and 13%, respectively, versus 2025 levels.

Micron is 1 of a tiny fig of planetary representation spot suppliers, alongside SK Hynix and Samsung (005930.KS). Those companies nutrient DRAM, which is utilized arsenic portion of the high-bandwidth representation (HBM) indispensable for AI information centers, arsenic good arsenic successful treble information complaint (DDR) memory, which is utilized successful assorted permutations successful smartphones, laptops, and astir different computers.

Because HBM offers higher margins, representation makers are gathering much chips for information centers than for different electronics, expanding prices connected user and endeavor devices.

Micron, successful particular, made a strategical determination to discontinue its Crucial enactment of user representation products successful favour of focusing connected HBM chips.

On Monday, Micron announced plans to physique a 2nd works astatine a tract it acquired successful Taiwan successful January.

And successful January, the institution broke crushed connected a caller $100 cardinal mega fabrication installation to nutrient representation chips successful New York authorities to summation supply.

Micron banal has benefited handsomely from the AI boost, climbing 357% implicit the past 12 months and 63% since the commencement of 2026.

Meanwhile, Sandisk (SNDK), which focuses connected retention chips, has seen its banal rocket 1,239% implicit the past year, driven by precocious request from information halfway builders.

Email Daniel Howley astatine [email protected]. Follow him connected Twitter astatine @DanielHowley.

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