Micron delivered a blowout fiscal year with $37.4B in revenue, up nearly 49% year-over-year, and diluted EPS of $7.59, alongside gross margins of 39.8% — a substantial recovery from the trough cycle that wiped out profitability just two years ago. The results were driven by explosive demand for High Bandwidth Memory (HBM), the specialty DRAM variant that sits inside Nvidia's H100 and B200 GPUs and is now a genuine bottleneck for AI datacenter buildouts.

The earnings expose a structural shift: AI accelerators need roughly 6-8x more memory bandwidth than traditional compute, and only three companies — Micron, SK Hynix, and Samsung — can supply HBM at scale. Micron has been gaining share in HBM3E qualifications with major hyperscalers, making this print more than a cyclical recovery story.

The bull case centers on duration: if AI capex remains elevated through 2026 and Micron continues ramping HBM share, the $37.4B revenue run-rate could prove conservative. The bear case is that the stock likely prices in a significant portion of this optimism on a surge day, and memory has a well-documented history of over-earning at cycle peaks before supply catches up.

Key things to watch: HBM pricing trends in subsequent quarters, Samsung's qualification progress with Nvidia (a competitive threat), and whether hyperscaler capex guidance holds into 2026. The next earnings print and any management commentary on HBM supply agreements will be the clearest near-term catalysts.