I’m skeptical of the AI bubble. Micron just gave me $54.23 billion in quarterly revenue to argue with.
MU beat expectations—and its next-quarter outlook gives the bulls more ammunition. 👀
Fiscal Q4 results:
• Revenue: $54.23B vs. $51.33B expected.
• Adjusted EPS: $33.42 vs. $31.72 expected.
• Adjusted gross margin: 87%.
Next quarter’s guidance midpoint:
• Revenue: $61.5B.
• Adjusted EPS: $38.15.
But the detail that caught my attention goes beyond the earnings beat.
Customer financial commitments under long-term supply agreements increased from $22B to $32B, mostly through cash deposits.
Customers putting money down carries more weight than another executive saying “AI changes everything.”
My position hasn’t changed: I don’t own MU. I passed below $200 last year because I didn’t understand the business well enough.
Today, I respect it much more. These results strengthen my conviction that Micron can keep growing, even while I question the returns on parts of the wider AI spending boom.
There’s still a catch: next quarter’s adjusted gross-margin guidance is 86.25%, slightly below this quarter’s 87%. Strong growth doesn’t make this business immune to pressure.
The report gives the bullish thesis more substance. It doesn’t make every entry price attractive.
Would you buy MU after this report—or wait for the price to offer you a better deal?
#EarningSeason #MicronPostsRecord84.9%GrossMargin