Schwab Network MU Massive Earnings & Guidance Beat Weighed Down by Supply, Power Constraints
Mar 18, 2026
Ben Bajarin, principal analyst and CEO at Creative Strategies, provides tech industry analysis focused on semiconductors and memory markets. He unpacks Micron's huge earnings beat and the supply and power limits that could throttle future upside. He also contrasts memory firms with fabs and explains how infrastructure shifts from players like NVIDIA amplify demand across memory, storage, and networking.
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Memory Upside Hinges On Capacity And Power Limits
- Micron's upside is capped by industry-wide capacity and power constraints that limit how much memory makers can supply to hyperscalers.
- Ben Bajarin says these constraints are well understood and already partially priced into valuations, keeping upside tied to capacity expansion pace.
Price In Capacity Limits When Valuing Memory Stocks
- Investors should factor constrained capacity and power limits into revenue forecasts rather than assuming unlimited scale.
- Bajarin stresses due diligence on reasonable capacity assumptions will determine how much upside is priced into memory names.
AI Demand Makes Memory Shortages Persistent
- Memory demand from AI workloads looks structural and long-lived, so digestion risk is lower than typical memory cycles.
- Bajarin notes hyperscaler capex must keep rising and memory players historically avoid overbuilding fabs, prolonging shortages.