Strong AI memory demand boosts Micron outlook into 2026
Record revenue and bullish guidance reinforced Micron’s position as the S&P 500’s top chip performer.
Micron Technology reported record first-quarter revenue for fiscal 2026, supported by strong pricing, a favourable product mix and operating leverage. The company said tight supply conditions and robust AI-related demand are expected to continue into 2026.
The Boise-based chipmaker generated $13.64 billion in quarterly revenue, led by record sales across DRAM, NAND, high-bandwidth memory and data centres. Chief executive Sanjay Mehrotra said structural shifts are driving rising demand for advanced memory in AI workloads.
Margins expanded sharply, setting Micron apart from peers such as Broadcom and Oracle, which reported margin pressure in recent earnings. Chief financial officer Mark Murphy said gross margin is expected to rise further in the second quarter, supported by higher prices, lower costs and a favourable revenue mix.
Analysts highlighted improving fundamentals and longer-term visibility. Baird said DRAM and NAND pricing could rise sequentially as Micron finalises long-term supply agreements, while capital expenditure plans for fiscal 2026 were viewed as manageable and focused on expanding high-margin HBM capacity.
Retail sentiment also turned strongly positive following the earnings release, with Micron shares jumping around 8 per cent in after-hours trading. The stock is on track to finish the year as the best-performing semiconductor company in the S&P 500, reinforcing confidence in its AI-driven growth trajectory.
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