Micron Delivers

MU delivered the quarter the bulls needed. Now the market has to prove it can act on it. Here's what I'm watching...

Marlin Capital Readers,

Today was another volatile session for US stocks.

The S&P 500 gave back its early gains to close -0.1%, while the Nasdaq finished -0.4%. Everyone was waiting on the same thing, and that was MU earnings after the bell.

The entire AI complex came into tonight’s MU report bruised and on edge. It started yesterday in Korea. The KOSPI crashed nearly -10%, one of the worst single days in the history of the Korean market. The two giants at the heart of the global memory trade, Samsung and SK Hynix, both fell more than -12%. That selling bled straight into our market and hit the exact names we care about most. Over the last 2 days, the Memory ETF (DRAM) was down -12%, and the SOX was down -8%.

This made MU’s earnings report tonight even more critical. The entire memory and semi complex had just been taken to the woodshed, fear was running high, and everyone was bracing for MU to either stop the bleeding or make it a whole lot worse.

Then the closing bell rang, and MU changed everything.

Micron Delivered An Unbelievable Quarter

The numbers are staggering. Revenue came in at $41.5B, which was a +17% beat. Adjusted EPS was $25.11, a +23% beat. A year ago, this same company earned $1.91 per share. That’s a >12x! Gross margins hit a record ~84.6%, up from 38% a year ago. Are you kidding me!? 🤯

But none of that is the real headline. The real headline is the guide. MU guided next quarter to $50B in revenue, while the Street was looking for ~$43B. They guided EPS to ~$31 against a ~$25 estimate. That isn’t just a casual beat, it’s a massacre.