Stock Market Today: Dow Rises After Key Inflation, Surprise GDP Data; Micron Rockets On Earnings News (Live Coverage)
Micron Technology surged after reporting FY2025 revenue of $37.4B (+48.9% YoY) with gross margins of 39.8% and diluted EPS of $7.59, well ahead of depressed expectations. The blowout print resets the AI memory cycle narrative and forces consensus to chase price targets higher — the question is whether the move is already in the stock.
Micron Technology delivered a standout earnings result that propelled shares sharply higher, with FY2025 revenue reaching $37.4 billion — a nearly 49% jump year-over-year. Gross margins came in at 39.8% and net margins at 22.8%, while diluted EPS landed at $7.59. The numbers confirm that the HBM (high-bandwidth memory) upcycle driven by AI infrastructure buildout is translating into real earnings power for Micron, not just pipeline talk.
The result matters beyond Micron itself: it validates the AI-driven memory demand thesis that has been contested throughout 2024 and into 2025. Names across the semiconductor and memory supply chain — from equipment vendors to downstream module makers — stand to see re-rating pressure. Broader macro context is constructive too, with the Dow rising on softer inflation data and a GDP surprise that reduced near-term recession anxiety.
The central tension now is whether the stock can sustain momentum post-gap or whether the good news is already priced. Micron has historically been a 'buy the rumor, sell the news' name at cycle peaks. However, a 48.9% revenue ramp with expanding gross margins is not a peak profile — it suggests the upcycle still has legs, especially as HBM3E ramps into 2026 data center builds.
Bull case rests on the margin trajectory: if gross margins continue expanding toward 45%+ as HBM mix increases, consensus EPS estimates for FY2026 will need significant upward revision, pulling price targets higher. Bear case centers on DRAM/NAND commodity pricing — any softness in non-AI memory segments or a customer inventory digestion cycle could compress margins faster than the HBM tailwind can offset.
Key things to watch: the next quarterly guide, HBM shipment commentary, and whether Samsung or SK Hynix signal incremental capacity additions that could pressure pricing. The macro read — softer CPI and a GDP beat — removes a near-term headwind and is modestly supportive of the risk environment for semis broadly.
MU has rocketed on a near-50% revenue surge and margin expansion — the question for MU and the broader semi complex is whether the AI memory upcycle still has legs or whether the gap-up exhausts near-term upside.
MU's 48.9% YoY revenue growth and 39.8% gross margins are not a cycle-peak profile — they indicate an upcycle still building, driven by HBM3E adoption in AI data centers. Consensus EPS estimates for FY2026 almost certainly need upward revision given the magnitude of the beat, which typically drives sustained multiple re-rating rather than a one-day pop. The constructive macro backdrop (softer inflation, GDP beat) reduces the discount-rate headwind that pressured semis through 2024.
A cautious forward guide — particularly any commentary on DRAM/NAND inventory digestion outside the AI segment — could reverse the gap quickly; Samsung or SK Hynix capacity announcements adding supply would compress the pricing tailwind underpinning margin expansion.
CoverageSource: Yahoo Finance · Published here THU, JUN 25 · 8:48 AM ET · the only report in this recordHow this is decided →
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With FY2025 gross margins at 39.8% on $37.4B in revenue and HBM mix set to increase further into 2026 data center builds, consensus FY2026 EPS revisions alone could drive price targets 15-25% higher as analysts reset models.
Micron's non-AI DRAM and NAND commodity segments remain vulnerable to inventory digestion cycles, and a single soft quarterly guide — or a competitor capacity announcement — could rapidly unwind margin assumptions that the current valuation depends on.
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