What changed
$MU — Manufactures memory and storage semiconductor chips.
🎯 Q1 FY26 | Rev $24B | EPS $12.20 vs $9.16 🟢 | Margin 67.6%
💡 Consensus expects EPS of ~$9.16 for FQ2-26, but actual came in at $12.20, a 33% beat. The market may still be pricing in a cyclical downturn narrative, but Micron's data center and cloud memory segments are booming, with revenue up 196% YoY and gross margins expanding to 74%.
🏢 Business Quality: 8/10 | Valuation: fair
📉 Reward/Risk: Upside 25% to $1,115 (15x FY26 EPS of $40+), downside 15% to $758 (10x FY26 EPS). Ratio: 1.7:1.
🔮 Catalyst: Next earnings report (likely late June 2026): watch for continued revenue growth, gross margin expansion, and guidance above consensus. Failure signal: sequential revenue decline or margin compression.
💰 Entry: Current price $891.88 is attractive given the earnings beat and strong fundamentals.
Also in play: $INTC $AMD $NXPI $STM $MRVL $ASML