Motley Fool Money Micron Revenue Smashes Expectations, but Wall Street Yawns
Mar 19, 2026
Jon Quast, investment analyst focused on transportation and autonomous vehicles. Matt Frankel, investment analyst who covers tech and semiconductors. They dig into Micron’s blockbuster quarter and why the market shrugged. They unpack Uber’s Rivian autonomous-vehicle tie-up. They examine Alibaba’s ambitious $100B AI revenue target and what it means for global AI investing.
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Micron's Blowout Quarter Driven By AI Demand
- Micron's revenue nearly tripled year-over-year and gross margin doubled to ~74%, driven by AI infrastructure demand.
- Management says it could only produce 50%–66% of big customers' orders, forcing price strength and huge guidance beat for next quarter.
Multi Year Deals Could Change Memory Cyclicality
- Micron shifted from uncertain long-term contracts to multi-year strategic customer agreements, including its first five-year deal.
- These commitments give visibility and could lengthen memory cycles beyond the typical 3–4 year boom-bust pattern.
Big CapEx Boost Raises Execution And Demand Risk
- Micron is increasing capex substantially, building a $100 billion campus and raising construction spend by $10 billion over prior plans.
- That accelerates capacity but adds execution and demand-risk if AI spending slows before capacity is absorbed.