Will Micron’s Q1 2026 earnings justify its sky-high valuation? The reminiscence chip large stories on Dec. 17, with analysts anticipating a blockbuster quarter.
Micron Expertise (MU +4.66%) stories outcomes for fiscal first-quarter 2026 on Dec. 17. If analyst estimates show correct, shareholders may need to get away the champagne — or a minimum of a celebratory vitality drink. You recognize the drill: Huge computing demand from synthetic intelligence (AI) software program giants can energy large enterprise outcomes on the {hardware} aspect.
Immediately’s Change
(4.66%) $10.57
Present Worth
$237.22
Key Knowledge Factors
Market Cap
$267B
Day’s Vary
$226.69 – $240.57
52wk Vary
$61.54 – $260.58
Quantity
21M
Avg Vol
26M
Gross Margin
40.17%
Dividend Yield
0.19%
What Wall Road expects from Micron’s massive day
Wall Road analysts count on the reminiscence chip large to publish earnings of $3.79 per share on income of $12.61 billion. That year-over-year progress would make even probably the most jaded tech investor do a double-take. The earnings estimate factors to greater than double final 12 months’s Q1 earnings of $1.79 per share. Income ought to soar 45% larger, from $8.71 billion.
Latest strikes sign confidence within the AI growth’s endurance. In November, Micron started transport its automotive UFS 4.1 resolution, doubling bandwidth to 4.2 gigabytes per second (GB/s) to feed data-hungry AI fashions in next-generation autos. Each automotive is principally a pc these days, you recognize.
Extra tellingly, Micron introduced this week that it is exiting the Essential client enterprise completely by February 2026. Why abandon a widely known model? Merely put, they want each ounce of producing capability for the extra profitable AI server chip market.
Picture supply: Micron Expertise.
About these eye-popping valuation ratios…
Sure, Micron’s inventory appears to be like expensive at 31 instances trailing earnings and a downright comedic 160 instances free money circulation. However this is the factor about these ratios — they will get distorted when an organization has not too long ago crawled out of the earnings basement. When your trailing-12-month denominator was barely optimistic final quarter, even modest enhancements create eye-popping multiples.
Demand for high-bandwidth reminiscence reveals no indicators of cooling, and the memory-chip business is having fun with skyrocketing unit costs consequently. The provide and-demand economics are working in Micron’s favor proper now.
So, Micron seems effectively positioned to ship one other quarter of spectacular progress. Tune in on Dec. 17 to see the entire story.
Anders Bylund has positions in Micron Expertise. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.
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