Hi,
Guidance was $50b and $31 EPS(say $32 billion net income). I expect a significant beat. The market expects $53B. I think it will be quite a bit more. $58, maybe as high at $60B (eps $35?). Will they guide $70b+ for Q1(fiscal 27). I don't know, nobody does. Just remember one simple fact, there is no peak in sight, they are constrained. Demand is increasing every quarter, every year for as far as they can see. Micron are now producing quarterly earnings only a few elites can match. More than Apple, as much as GOOG. 15X more than AMD (same valuation ) 1000X more than Crowdstrike
The question is, are their earnings durable-I think they. You dont have to maintain 90% margins to justify a higher valuation because the market has never valued them accordingly. My view is long term the company will be able to produce EPS as a base line in the range $200 with higher peaks before.
I have no idea what the reaction will be-it's not priced accordingly(is it) so im only interested in the numbers and what management have to say
My thoughts are-everyone is talking about HBM, however HBM is actually very expensive to produce as it hoovers up a large wafer count vs the end bit yield and is actually a drag on margins. Inference re agentic Ai is making other Dram more important when it comes to margins.
The AI memory race is shifting beyond pure HBM market share towards CPU-attached memory, where margins look structurally stronger and Micron currently holds the advantage(over SK).
Agentic AI workloads require agents to maintain long-running state, plan and manage expanding KV caches. While model inference still runs on GPUs with HBM, much of the supporting work and context lives on the CPU side in system memory and storage.
This is pushing demand towards high-capacity, power-efficient LPDRAM in SOCAMM form factors, high-capacity server DDR5 RDIMMs and data-centre SSDs for offload. Nvidia’s own software already moves KV cache out of scarce HBM into these cheaper, higher-capacity tiers .In 2026 HBM pricing was largely locked in at lower levels from earlier negotiations, while conventional DRAM contract prices surged several-fold.
Because HBM also consumes far more wafer capacity per bit, its revenue and profit per wafer fell behind ordinary server DRAM. Suppliers with heavier HBM exposure therefore faced a margin drag; those able to tilt mix towards CPU-side products enjoyed superior pricing power and profitability.
DDR5 server memory and SSDs are emerging as the huge revenue and margin drivers. Surging prices, strong volume growth from agentic demand and far better wafer economics than locked-in HBM make them highly profitable. Micron, with the smallest HBM share among the big three, grew DRAM revenue fastest and posted the highest operating margins. It pioneered data-centre SOCAMM, led capacity ramps, and saw its Core Data Center Business Unit (covering high-capacity DDR5, LPDRAM and storage) become the company’s fastest-growing segment. The winners in this phase are therefore those strongest in these CPU-centric memory types, not simply the HBM volume leaders.
I will be listening to the call for comments re the above
