Micron's memory chips went up 379% YoY, but $MU stock said "meh" 📈

Micron Technology reported $54.23 billion in revenue for its fiscal fourth quarter ended Sept. 3, up 379% from a year earlier and roughly $3 billion above the $51.07 billion analysts had expected. Adjusted earnings came in at $33.42 per share, beating the $31.61 estimate, while adjusted gross margin reached 87.0%, ahead of the 86.1% projection. Under standard accounting rules, net income hit $37.70 billion, up from $3.20 billion a year ago, and Micron kept 87 cents of every sales dollar after production costs compared with about 46 cents previously.

The rally was driven by AI-linked demand for memory chips that feed data center processors. Core Data Center revenue rose to $18 billion from $1.58 billion, while Cloud Memory brought in $16.28 billion, lifting all four of the company's business units. To lock in supply, customers prepaid $12.75 billion under long-term Strategic Customer Agreements during fiscal 2026, with most of those deposits arriving in the final quarter. "Our Strategic Customer Agreements provide added confidence in the durability of Micron's financial performance," CEO Sanjay Mehrotra said in a statement.

For the fiscal first quarter of 2027, Micron guided to $61.5 billion in revenue, plus or minus $1.5 billion, well above the $57.02 billion estimate. Adjusted EPS guidance of $38.15, plus or minus $1.00, topped the $35.40 consensus, though the gross margin guide of about 86.25% came in slightly below the 86.4% projection. The report arrived against the backdrop of Taiwan chip exports hitting a record and an early-month slide in chip stocks tied to AI slowdown concerns.

Shares barely budged on the numbers. Micron closed at $1,065.08 and traded near $1,068.90 after hours, up 0.36%, shortly after the release. Investor Michael Burry, known from "The Big Short," disclosed put options on the stock this week, a bearish position that pays off if the price falls. Management is set to discuss the outlook on its earnings call at 4:30 p.m. EDT on Wednesday, with Micron trading under the ticker $MU.