Micron Technology delivered a record-breaking second quarter, with revenue soaring to $23.86 billion, a 196% increase year-over-year and 75% sequentially. Non-GAAP diluted EPS reached $12.20, significantly outperforming the consensus estimate of $8.50. This exceptional growth was fueled by a tripling of revenue in the DRAM segment and a 169% surge in NAND, driven by relentless demand for AI-optimized memory like HBM3E and high-capacity data center SSDs.
Note: Micron Technology's FY'25 ended on August 28, 2025. Q2 FY'26 ended on February 26, 2026.
During the Q2 earnings cycle, Micron announced it has commenced volume shipments of its next-generation HBM4 36GB 12-high memory. This product is specifically designed for NVIDIA's Vera Rubin architecture, positioning Micron as a first-mover in the next phase of AI hardware. The company also unveiled plans for HBM4E production in 2027, signaling a clear roadmap to maintain its competitive lead in the high-bandwidth memory market.
Below are key drivers of Micron Technology's value that present opportunities for upside or downside to the current Trefis price estimate:
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Micron Technology is a global leader in memory and storage solutions, providing essential DRAM and NAND components that serve as the backbone for artificial intelligence, data centers, mobile computing, and automotive electronics.
Micron's value is increasingly concentrated in its high-margin specialized memory products which are essential for the current AI-driven hardware evolution.
Micron's HBM3E and newly shipping HBM4 solutions have become critical strategic assets for AI chipmakers like NVIDIA. With its 2026 HBM capacity already fully sold out, Micron has secured a stable, high-margin revenue stream that is less susceptible to the traditional volatility of the commodity DRAM market.
The company's transition to the 1-gamma DRAM node is the fastest in its history and is expected to represent the majority of its bit mix by mid-2026. This manufacturing efficiency allows Micron to deliver superior power-per-watt performance, a key requirement for hyperscale data centers facing energy constraints.
The shift toward on-device agentic AI is expected to double the memory requirements for PCs and smartphones. Micron anticipates that AI-capable PCs will require at least 32GB of RAM, creating a massive replacement cycle and content-growth tailwind for the Client and Mobile business units.
Micron is making massive strategic investments in its global manufacturing footprint, including new fabs in the U.S. and Singapore. Supported by the CHIPS Act, this geographical diversification is intended to mitigate geopolitical risks and ensure long-term supply leadership as memory becomes a strategic national asset.
Management has identified robotics as a major 20-year growth vector. AI-enabled humanoid robots are expected to require compute platforms similar to high-end autonomous vehicles, potentially making robotics one of the largest categories for memory and storage demand in the next decade.
