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Micron’s Q1 Beat and Strong Outlook Ignite Bullish Calls

AI-fueled memory shortages are driving higher prices, rising shipments, stronger profitability.

Overview

  • Micron reported Q1 2026 revenue of $13.64 billion, sharply above the prior year, with operating income rising to $6.14 billion and gross margin reaching $7.65 billion.
  • DRAM sales jumped 69% on mid-30% average selling price gains and mid-20% bit shipment growth, while NAND sales rose 22% on higher shipments despite lower prices.
  • For Q2 2026, Micron guided to non-GAAP revenue of about $18.7 billion and gross margin of roughly 68%, signaling continued strength.
  • Deutsche Bank raised its Micron price target to $300 and kept a Buy rating following the results and guidance.
  • Jim Cramer praised the quarter, said demand exceeds supply, cited equipment constraints on capacity expansion, and called Micron “a cash machine,” noting a roughly 10% stock pop.