Micron Technology Inc. (NASDAQ:MU) delivered a massive fourth-quarter earnings beat that prompted investor Ross Gerber to call the chipmaker a “beast” and declare the end of its historical boom-and-bust cycle.
‘I’ve Never Seen Anything Like This’
Following the memory manufacturer’s report of a record $54.23 billion in quarterly revenue, Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber took to social media platform X to praise the financial results.
“Micron is a beast. Amazing numbers and only getting better,” Gerber stated in his post. Directly challenging Wall Street’s long-held view of the memory market’s volatility, he added, “This is not a cyclical business anymore. I don’t think I’ve ever seen anything like this. Amazing.”
Breaking the Cyclical Trend
Historically, the memory chip sector has been defined by aggressive supply and demand swings. However, Micron’s executive leadership echoed Gerber’s sentiment, suggesting the industry is undergoing a permanent structural shift.
Chief Executive Officer Sanjay Mehrotra emphasized during the earnings call that the current AI boom is creating unprecedented, long-term supply constraints that will not ease soon.
“In calendar ’27 as well as ‘2028, we see demand exceeding supply,” Mehrotra told analysts during the earnings call. “And in fact, we see greater tightness in the industry in ’27 and in ’28 versus ’26.”
Securing the Future
To support the argument that the cyclical nature of the business is dead, Micron pointed to its Strategic Customer Agreements (SCAs). The company has now secured 26 of these multi-year, take-or-pay contracts.
These agreements lock in over 35% of Micron’s projected revenue through 2030 and come backed by $32 billion in customer financial commitments, largely in the form of cash deposits.
Monster Financial Results
The catalyst for the shifting narrative was a staggering quarterly performance. Micron’s $54.23 billion in fourth-quarter revenue easily surpassed analyst estimates of $50.75 billion. The company reported adjusted earnings of $33.42 per share.
Looking ahead, Chief Financial Officer Mark Murphy projected first-quarter revenue to reach between $60 billion and $63 billion. Murphy also noted that the first quarter will serve as the “floor” for gross margins in fiscal 2027, signaling that profitability is expected to climb even higher as the company navigates the AI-driven memory shortage.
How Has MU Performed in 2026?
Price Action: At the last check, the MU stock was trading 0.59% lower in premarket trading on Thursday. It is up 273.19% year-to-date, and 14.18% over the last month. The stock closed 0.01% higher at $1,065.11 on Wednesday.
Benzinga’s Edge Stock Rankings indicate that MU maintains a strong price trend in the short, medium, and long terms, with a poor value score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Login to comment