Overview
- In late June Micron reported a blockbuster fiscal quarter with about $41.5 billion in revenue, roughly 85% gross margin and guidance near $50 billion for the next quarter.
- The company disclosed 16 strategic customer agreements that it says represent roughly $100 billion of minimum obligations and about $22 billion of deposits, giving unusual multi‑year revenue visibility for a memory supplier.
- Micron says DRAM, NAND and HBM shortages should persist beyond calendar 2027 because greenfield fabs and advanced memory ramps take years and need power, skilled labor and permitting.
- Despite the strong fundamentals the stock retraced more than 20% from its highs as investors weighed stretched valuation, peak‑margin risk, macro headlines and potential competitor capacity ramps in 2027–2028.
- Analysts are split: multiple firms sharply raised price targets into the high‑teens and low‑thousands per share on durable AI demand while skeptics and prominent shorts warn that hyperscaler spending variability or rival expansions could quickly reverse pricing and margins.