Micron Stock Dips Despite Strong Earnings and AI-Driven Demand

Micron Technology delivered robust fiscal fourth-quarter results, with revenue reaching $11.32 billion—a 46.1% year-over-year increase—and adjusted EPS of $3.03, surpassing analyst expectations. Despite the strong performance, shares closed nearly 3% lower, reflecting Wall Street's unpredictable reactions.

Demand for AI data center solutions fueled Micron's growth, particularly in DRAM and HBM products, which are fully booked through 2026. Management's guidance for the November quarter exceeded consensus estimates, projecting adjusted EPS between $3.60 and $3.90 and revenue of $12.2 billion to $12.8 billion.

Profitability continues to improve, with gross margins climbing from 35.3% a year ago to 44.7% in Q4, expected to surpass 50% next quarter. The disconnect between fundamentals and market sentiment highlights the volatility in tech stocks, even as AI-driven demand shows no signs of slowing.