Overview
- Micron posted Q1 FY2026 revenue of $13.6 billion with 56.8% gross margin and $3.9 billion in free cash flow, marking a third straight quarterly record.
- Wall Street raised targets after the results, with Deutsche Bank at $500, Needham at $450, and Morgan Stanley reiterating $450.
- Micron says AI memory, including HBM, is fully booked for 2026, and its operations chief has called the chip shortage unprecedented.
- UBS projects sharp Q1 price gains, with DRAM contract prices up about 62% and NAND up roughly 40%, reflecting tight supply.
- Capacity relief remains years out as Micron commits about $200 billion to U.S. fabs, with Idaho output expected mid‑2027 and a New York project slated for 2030, while observers caution about eventual cyclical oversupply risk.