Chip Stock Investor Podcast MU Earnings: Sold Out Capacity, Record Sales... Why We're Cautious.
Dec 18, 2025
Micron just announced an impressive $13.6 billion in revenue, fully booked through 2026. They discuss robust growth driven by cloud memory and AI applications. Despite the stellar performance and guidance indicating significant revenue increases, there's a cautious outlook due to potential cyclicality in the market. The conversation also covers the impact of capital expenditures on profitability and a strategic exit from their direct-to-consumer segment while maintaining sales to manufacturers. Balancing optimism and caution is key!
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Capacity Fully Booked Through 2026
- Micron has booked out capacity through 2026, signaling very strong demand for memory products.
- Full capacity booking implies tight supply and sustained pricing power in the near term.
Data Center Markets Powering Revenue
- Cloud memory and core data center sales drove record revenue with $5.3B and $2.4B respectively.
- Core data center includes high-bandwidth memory tied to GPUs and accelerators for AI workloads.
Guidance Implies Huge YoY Growth
- Micron guided to $18.7B revenue next quarter implying ~132% year-over-year growth.
- GAAP and adjusted EPS also show very large year-over-year increases driven by the revenue surge.