Micron: A Lever On AI Growth

The Asian Investor31.13K FollowersFollow5ShareSavePlay(11min)CommentsSummaryMicron Technology, Inc. delivered a strong Q1 earnings beat, driven by surging Data Center demand and record high bandwidth memory, or HBM, revenue.MU's entire HBM supply for the next year is contracted, with HBM4 adoption set to accelerate alongside Data Center build-outs.The firm's gross margin expanded to 57% in Q1’26 (+11.1 PP Q/Q), with Cloud Memory margins reaching 66%, highlighting robust earnings leverage.The HBM market is rapidly expanding, and more quickly than expected, leading to an even more attractive growth run-way for Micron.At less than 10X forward P/E, MU offers a discounted AI infrastructure play, though cyclical risks remain if Data Center spending slows. imaginima/iStock via Getty Images Micron Technology, Inc. (MU) reported much better-than-expected earnings for its first fiscal quarter of FY 2026 as the memory company generated record HBM-related revenue amid strong demand from the Data Center market. High bandwidth memory, orThis article was written byThe Asian Investor31.13K FollowersFollowI am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.Analyst’s Disclosure:I/we have a beneficial long position in the shares of MU, NVDA, AMD, AVGO, TSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.