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technology8h ago
Micron’s 50% Problem: Why Having Too Few Microchips is Making Investors Rich
- Micron reported Q2 revenue of $23.86B and EPS of $12.20, driven by the Cloud Memory unit's strong gross margin.
- Micron says demand for DRAM and HBM can only be met at roughly half to two thirds of customers’ needs.
- CEO Sanjay Mehrotra unveiled a $200 billion plan to expand U.S. memory production.
- Micron targets 40% domestic manufacturing by 2036 and aims to create about 90,000 high‑paying jobs.
- Mehrotra frames the shortage as structural, not cyclical, with meaningful new supply not arriving until 2028.
- Memory is described as a foundational technology for AI, impacting pricing power through 2028 and beyond.
- Boise, Idaho, will begin wafer production mid-2027 as part of the onshoring plan.
- A broad capacity ramp is expected in 2028 as new facilities come online.
- Analysts noted Micron’s stock trades near $751 after a strong month and a high forward multiple.
- Insider activity included Mehrotra selling 7,000 shares and other directors reducing holdings.
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