Micron Post Earnings: Just How Good Could Things Get?

Tech Stock ProsInvesting Group LeaderFollow5ShareSavePlay(7min)Comments(2)SummaryMicron Technology, Inc. is one of the few companies walking the talk on AI, guiding for adjusted profit to almost double sequentially from $4.78 to $8.42 and $4-5B top-line upside in Q2.Everyone knows that MU is extremely well-positioned due to the memory-bound nature of AI build-out, but we don't think markets recognize that Micron has more leverage in the bank.Unlike Nvidia and Broadcom, Micron just reported a gross margin of 56.8%, up from 45.7% last quarter, and is guiding for 68% next quarter, with more growth expected in FY26.The AI bubble panic is scary, but we don't see a reason to be scared of MU stock.We continue to be bullish on MU because we see another round of outperformance in 2026 as industry transitions to HBM4. JHVEPhoto/iStock Editorial via Getty Images Micron Technology, Inc. (MU), is extremely well positioned within AI-led memory demand, and everyone knows it. This means that being good isn’t good enough; Micron needs to convince investors that great growth cannot only be achievedThis article was written byTech Stock Pros12.05K FollowersFollowTech Stock Pros is a team of three former technology sector engineers with a long history of investing in the tech sector. They run Tech Contrarians, an investing group providing institutional-level company research to individual investors. Utilizing a live portfolio with quarterly updates, bi-weekly newsletters, and answering questions daily via chat, Tech Stock Pros aims to demystify investing in the technology sector. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MU over the next 72 hours. 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.