Micron reported a blowout fiscal year, with revenue climbing 48.9% year-over-year to $37.4B and diluted EPS landing at $7.59, alongside a healthy 39.8% gross margin and 22.8% net margin. The results beat expectations broadly enough to spark a rally across the memory and semiconductor complex, with peers like SK Hynix and Samsung also catching a bid on the read-through.

The core driver is AI infrastructure spending — HBM (High Bandwidth Memory) demand tied to GPU clusters is pulling Micron's mix toward higher-ASP, higher-margin products. That shift is what's compressing cycle risk and underpinning the bullish memory outlook management telegraphed.

The tension now is whether the 48.9% revenue growth rate has already been priced in — MU has historically mean-reverted sharply once memory cycle peaks are confirmed. Bears will argue that DRAM spot prices, which have shown softness in legacy DRAM, could drag blended ASPs lower even as HBM ramps. The stock's reaction will depend heavily on forward guidance and HBM allocation updates.

Key things to watch: HBM revenue contribution as a percent of DRAM mix, any commentary on 2026 capex cycle from hyperscalers, and whether legacy NAND continues to weigh on overall margins. If guidance disappoints relative to the elevated bar, the post-print rally could reverse quickly.