Micron Falls Over 3% as Large Year-to-Date Gains and Below-Expected Q1 Gross Margin Guidance Weigh on Stock

Market Focus
1 hour ago

On October 1, Micron Technology fell more than 3% in regular trading, despite reporting record-breaking fiscal Q4 results the prior evening.

Micron posted Q4 revenue of $54.23 billion, up 379% year-over-year and above the $51.49 billion consensus estimate. Adjusted EPS came in at $33.42, topping the $31.72 Street expectation. The company guided Q1 revenue to approximately $61.5 billion, well above the $56.8 billion analyst forecast.

CEO Sanjay Mehrotra disclosed 26 long-term supply agreements locking in roughly $150 billion in orders and stated that memory supply-demand tightness would intensify through 2027 and 2028.

However, the stock had already surged approximately 237% year-to-date heading into the report, leaving expectations extremely elevated. The Q1 gross margin guide of roughly 86.25% fell short of the 87.4% consensus, providing a near-term drag.

Analysts noted the market is shifting focus from the magnitude of the current boom to its durability.

Multiple Wall Street firms nonetheless raised price targets, with Rosenblatt setting a Street-high $1,900 and D.A. Davidson lifting to $2,100, underscoring a consensus view that the AI-driven storage super-cycle remains intact despite near-term profit-taking.

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