Micron is heading into earnings with a remarkable fundamental backdrop: FY2025 revenues of $37.4B represent 48.9% year-over-year growth, gross margins have expanded to 39.8%, and diluted EPS of $7.59 reflects the tenfold profit recovery Barron's flags in the headline. On paper, this is one of the strongest memory upcycles in the company's history, powered heavily by HBM (High Bandwidth Memory) demand tied to AI infrastructure buildouts.

The bear case — and it's a real one — is that memory stocks are notoriously forward-looking, and MU's current valuation likely embeds continued HBM momentum and near-peak pricing. If guidance signals any DRAM or NAND softness, inventory correction risk, or a slower-than-expected HBM ramp, the stock can reprice violently lower even on a beat. Barron's framing of a 'crash' despite a tenfold profit surge is not hyperbole for this sector — it's happened before.

The bull case rests on HBM supply remaining structurally tight, AI capex from hyperscalers continuing to accelerate, and MU being one of only three global DRAM suppliers with meaningful HBM capacity. If management raises forward guidance meaningfully and reaffirms HBM pricing discipline, the stock has room to re-rate higher from current levels.

The key watch items are: (1) the Q1 FY2026 revenue guide relative to consensus, (2) HBM shipment volumes and ASP commentary, and (3) any color on NAND oversupply. This is a binary earnings event — the fundamental print is almost irrelevant; the guide is the trade.