Briefing #1 of 1

MU briefing — Micron Technology, Inc.

Released: 2026-04-27 Briefing series: #1 of N Prior briefing: first in series Stock at release: $524.56 Inflection pattern: volatile_grower

What changed since the last briefing

(This is the first briefing in the series.)

Company snapshot

Ticker: MU
Name: Micron Technology, Inc.
What they do: Micron designs and manufactures dynamic random-access memory (DRAM), NAND flash memory, and NOR flash products sold under the Micron and Crucial brands; its primary end markets are data center (AI infrastructure, cloud), client computing, mobile, and automotive/embedded. High bandwidth memory (HBM) for AI accelerators is the fastest-growing product category. (10-K FY2025, filed 2025-10-03)
IPO date: Listed on NASDAQ in 1984; first candle in data: 2021-04-28
Market cap at release: ~$577B (~1.1B diluted shares × $524.56)
Sector / Industry: Technology / Semiconductor — Memory
HQ: Boise, Idaho
CEO / Founder status: Sanjay Mehrotra, President and CEO — professional management. (10-K FY2025, filed 2025-10-03)
Profitable?: Yes — net income $8,539M in FY2025 (year ended August 28, 2025); prior year net income was $778M (FY2024) and net loss -$5,833M (FY2023). (10-K FY2025, filed 2025-10-03)
Total shares outstanding: ~1.1B diluted shares (FY2025 weighted average)
Fiscal year end: Late August (52/53-week year; FY2025 ended August 28, 2025)

The arc

| Date | Event | Source | |------|-------|--------| | 2026-04-25 | Stock +5.4% — continued recovery momentum following AI demand optimism in memory sector | Event data, 2026-04-25 | | 2026-04-24 | Stock +7.9% — stock crossed above $500 for first time since Q2 FY2026 earnings sell-off | Event data, 2026-04-24 | | 2026-04-13 | Stock +8.5% — continued rebound from post-earnings lows | Event data, 2026-04-13 | | 2026-04-08 | Stock +8.5% — SiMa.ai partnership or investment announcement; AI edge memory demand positive | Event data, 2026-04-08 | | 2026-03-30 | Stock -8.0% — post-earnings continuation sell-off following Q2 FY2026 guidance disappointment | Event data, 2026-03-30 | | 2026-03-25 | Q2 FY2026 earnings (period ended February 26, 2026): stock -8.9% on the day; results met or missed consensus on guidance. | 8-K, filed 2026-03-25 | | 2025-10-03 | Filed 10-K FY2025: revenue $37,378M (▲49% YoY), gross margin 40%, operating margin 26%, net income $8,539M — a full cycle reversal from a net loss of -$5,833M two years prior. | 10-K FY2025, filed 2025-10-03 | | 2025-07-04 | OBBBA (One Big Beautiful Bill Act) enacted — domestic R&D capitalization rules and tax structure changes affecting Micron's U.S. operations. | 10-K FY2025, filed 2025-10-03 | | 2024-01-01 | China's Cyberspace Administration of China (CAC) banned critical information infrastructure operators in China from purchasing Micron products — effective 2023, materially reduced China revenue exposure. | 10-K FY2025, filed 2025-10-03 | | 2023-01-01 | Memory industry trough: FY2023 revenue $15,540M, gross margin -9%, net loss -$5,833M — one of the deepest single-year contractions in memory industry history. | 10-K FY2025 (historical reference), filed 2025-10-03 |

Current state

Year-over-year changes (FY2024 → FY2025)

| Metric | FY2023 | FY2024 | FY2025 | Change FY24→FY25 | |--------|--------|--------|--------|-----------------| | Revenue ($M) | 15,540 | 25,111 | 37,378 | ▲49% | | Gross margin (%) | -9 | 22 | 40 | ▲1,800 bps | | Operating margin (%) | -37 | 5 | 26 | ▲2,100 bps | | Net income / (loss) ($M) | -5,833 | 778 | 8,539 | ▲+$7,761M |

Source: 10-K FY2025, filed 2025-10-03.

FY2025 revenue of $37,378M represented a 49% year-over-year increase and a 140% increase from the FY2023 trough. The recovery was driven primarily by the Compute and Memory Business Unit (CMBU), which includes HBM and data center DRAM: CMBU revenue reached $13,524M (+257% YoY). The Mobile (MCBU, $11,859M, +2%) and Embedded (AEBU, $4,753M, +3%) units recovered modestly; the Consumer (CDBU) unit grew 45% to $7,229M. Gross margin expanded from 22% in FY2024 to 40% in FY2025 — approaching historical peak-cycle levels. Operating income was $9,770M (26% margin), compared to $1,282M (5%) in FY2024 and -$5,694M (-37%) in FY2023. (10-K FY2025, filed 2025-10-03.)

HBM for AI accelerators (used in NVIDIA H100/H200/Blackwell and AMD MI300X platforms) is the primary cycle driver. Micron is one of three global HBM suppliers (alongside Samsung and SK Hynix). The China CAC ban (effective since 2023) removed critical information infrastructure operators as customers but did not eliminate all China revenue exposure.

Q2 FY2026 earnings (reported March 25, 2026) triggered a -8.9% stock reaction on the day and a -8.0% continuation the following trading session, suggesting guidance for Q3 FY2026 disappointed consensus expectations. The specific Q2 FY2026 revenue, gross margin, and forward guidance figures are in the 8-K exhibit filed March 25, 2026 — exhibit content not available in summary data. (Event data, 2026-03-25; 8-K, filed 2026-03-25.) The stock subsequently rebounded sharply through April: +8.5% on April 8, +8.5% on April 13, +7.9% on April 24, and +5.4% on April 25, recovering above $500. (Event data, 2026-04-08 through 2026-04-25.)

The OBBBA enacted July 4, 2025 altered domestic R&D capitalization rules and tax treatment; Singapore's Pillar Two global minimum tax regime was enacted November 27, 2024 and applies beginning 2026, which may affect Micron's effective tax rate on income earned in Singapore operations. (10-K FY2025, filed 2025-10-03.)

Key numbers

| Metric | FY2022 | FY2023 | FY2024 | FY2025 | |--------|--------|--------|--------|--------| | Revenue ($M) | 30,758.0 | 15,540 | 25,111 | 37,378 | | Gross margin (%) | 45.2 | -9 | 22 | 40 | | Operating margin (%) | 31.5 | -37 | 5 | 26 | | Net income / (loss) ($M) | 8,687.0 | -5,833 | 778 | 8,539 |

Source: 10-K FY2025, filed 2025-10-03. FY2022 figures require 10-K FY2022 review.

Recent news (last 6 months)

| Date | Headline | Source | Market reaction | |------|----------|--------|-----------------| | 2026-04-25 | MU continues recovery; AI memory demand outlook positive | Multiple | +5.4% | | 2026-04-24 | MU crosses above $500 for first time since earnings sell-off | Multiple | +7.9% | | 2026-04-13 | Stock rebounds on semiconductor sector rotation | Multiple | +8.5% | | 2026-04-08 | SiMa.ai partnership; AI edge memory demand catalyst | Event data | +8.5% | | 2026-03-30 | Post-earnings continuation sell-off | Multiple | -8.0% | | 2026-03-25 | Q2 FY2026 earnings: guidance disappoints consensus | 8-K / Multiple | -8.9% | | 2026-01-21 | Material event 8-K filing | SEC EDGAR | +7.2% | | 2025-12-17 | Material event 8-K filing | SEC EDGAR | +7.3% |

Open questions

Q2 FY2026 actuals and Q3 FY2026 guidance: The 8-K filed March 25, 2026 contains Q2 FY2026 revenue, gross margin, and forward guidance as exhibits. The -8.9% stock reaction implies guidance for Q3 FY2026 was materially below consensus. Verify specific numbers: what revenue, gross margin, and EPS guidance did Micron give for Q3 FY2026? (8-K, filed 2026-03-25.)
HBM revenue and market share: Micron is one of three global HBM suppliers. The 10-K FY2025 discloses HBM as the primary driver of CMBU's +257% growth. What is Micron's current HBM market share versus SK Hynix and Samsung, and what are the HBM supply agreements underpinning the 2026 revenue trajectory? HBM customer concentration and long-term supply agreements are not separately disclosed.
China exposure post-CAC ban: The CAC ban prohibits critical information infrastructure operators from purchasing Micron products. How much of Micron's remaining China revenue (if any) is at risk from further regulatory action? The 10-K FY2025 references this ban but geographic revenue breakdown needs full review.
OBBBA and Pillar Two tax impacts: The OBBBA enacted July 4, 2025 and Singapore's Pillar Two enactment (November 2024, effective 2026) may materially affect Micron's effective tax rate in FY2026. The 10-K FY2025 discloses these as pending items. Quantify the EPS impact.
CHIPS Act domestic manufacturing investments: Micron has disclosed CHIPS Act-related investments in U.S. manufacturing (New York and Idaho facilities referenced in industry reporting). The scale of these investments, any CHIPS Act direct funding awards, and the timeline to domestic production ramp were not available in summary filing data.

Red flags / things to verify

Memory cycle risk: Micron's financials swing violently with the memory cycle. FY2023 gross margin was -9%; FY2025 was +40%. The +8.9% stock decline on Q2 FY2026 earnings and subsequent -8.0% continuation suggest the market believes the cycle may be moderating or peaking. Any softening in HBM pricing or AI capex slowdown would compress margins rapidly.
HBM customer concentration: CMBU (which includes HBM and data center DRAM) grew 257% to $13,524M — it was approximately 36% of total FY2025 revenue. If NVIDIA, AMD, or other large HBM customers slow purchases or dual-source, the impact on CMBU would be immediate. Customer concentration is not separately disclosed in available summary data.
China CAC ban ongoing: China's ban on critical information infrastructure operators purchasing Micron products remains in effect. Any escalation of U.S.-China semiconductor trade restrictions could further limit Micron's addressable market in China.
Q2 FY2026 guidance miss magnitude: The combined -16.9% two-day decline on March 25–30, 2026 was the largest drawdown event in available data. The specific guidance range that triggered this reaction requires review of the 8-K exhibit. (8-K, filed 2026-03-25.)

Sources

10-K (FY2025): Filed 2025-10-03 — https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=MU&type=10-K&dateb=&owner=include&count=10
10-Q (Q2 FY2026): Filed 2026-03-19 — SEC EDGAR
8-K (Q2 FY2026 earnings): Filed 2026-03-25, Exhibit 99.1 — SEC EDGAR (exhibit content not available in summary data)
8-K (various material events): Filed 2025-09-23, 2025-10-21, 2025-12-17, 2026-01-21 — SEC EDGAR