Overview
- Micron, which reported blockbuster fiscal third‑quarter results in late June, posted about $79 billion in revenue for the first nine months of fiscal 2026 and roughly $47 billion in net income.
- Strong AI demand for high‑bandwidth memory and multi‑year take‑or‑pay contracts have given Micron unusually high margins and revenue visibility through 2030.
- Investors pushed the stock down roughly 27–30% from its late‑June peak as markets price medium‑term risk from new fabs rather than current fundamentals.
- The specific risk priced in is new capacity from rivals, including SK Hynix’s roughly $38 billion fab program whose earliest clean rooms are scheduled for 2028–29, which could widen supply and depress prices.
- Micron is expanding its own production with Idaho fabs and guiding fiscal 2026 capex above $25 billion, but execution, yield risks and potential low‑cost Chinese entrants leave longer‑term uncertainty for prices and margins.