Micron Earnings Lifted by AI Memory Demand

Micron Technology's latest results have made Micron earnings a focal point, as AI-driven memory demand pushed record revenue and gross margins, prompting large price-target upgrades and investor debate over valuation ahead of the June 24, 2026 report.

Fiscal Q2 Results and Legal Filings

Micron’s fiscal Q2 2026 revenue reached about $23.9 billion, up 196% year-over-year and roughly 75% sequentially. The result exceeded the high end of prior guidance and ran about 21% above market expectations. The company posted an adjusted gross margin near 75%, a record level, and a GAAP gross margin of about 74%. Adjusted earnings per share were approximately $12.20, up about 682% year-over-year and more than 33% above consensus. Both the Cloud Memory Business Unit and Core Data Business Unit posted strong quarter-over-quarter growth, rising about 47% and 139%, respectively.

In the prior quarter, Micron reported revenue of $13.6 billion, up 57% year-over-year, with non-GAAP EPS of $4.78. At that time, management had guided Q2 revenue near $18.7 billion.

On June 15, 2026, the U.S. Court of Appeals for the Federal Circuit issued a nonprecedential order in Yangtze Memory Technologies Co. v. Micron Technology, No. 26-1110, at 10:40 a.m. ET. Separately, an SEC Form 3 filed in mid-June disclosed that director Alexis Bjorlin holds an indirect beneficial interest in 260 shares of Micron common stock through a family trust. The filing is an initial statement of beneficial ownership and non-transactional.

AI Memory Demand, Supply Tightness, and Analyst Targets

High-bandwidth memory (HBM) and advanced DRAM are critical components for AI accelerators because stacking DRAM vertically increases bandwidth and performance while lowering power consumption. Demand for HBM has outpaced supply, creating a shortage. Only Micron, SK Hynix, and Samsung can manufacture HBM at scale, reinforcing pricing power.

Analysts describe widespread production discipline and "strategic scarcity," with long-term supply agreements and customer lock-in extending the upcycle and preserving margins. Customers are rushing to secure long-term deals, leaving a significant portion of HBM and DRAM output contractually committed to hyperscalers and AI-chip partners. Deepening partnerships with Nvidia and others around HBM supply are seen as catalysts for volume and mix.

Consensus projects revenue of about $27.4 billion for the upcoming quarter, with fiscal 2027 EPS forecasts raised to roughly $112 per share, implying a forward price/earnings multiple near 8.3 times. DRAM gross-profit forecasts have increased by roughly 300 basis points for fiscal 2026 and about 500 basis points for fiscal 2027 compared with prior models.

Sell-side analysts have sharply raised price targets, with TD Cowen lifting its target to $1,500 and RBC Capital Markets to $1,200. Nova Capital maintains a buy rating with a $1,300.50 target. The median target among 27 analysts is near $660. Some project the DRAM upcycle could last another 5–6 quarters as HBM adoption broadens in AI computing.

Not all analysts share the bullish view. A value-oriented analysis using the GF Value metric estimates intrinsic value near $381, contrasting with recent trading above $1,000. This divergence has intensified debate over whether the AI-driven surge reflects durable structural change or a cyclical peak likely to prompt supply responses and renewed volatility.