Micron's earnings were explosive—everyone can see the details, so I won't go over them. Instead, I'll share what I've picked up on, which is also what many are wondering: why did such a strong earnings report cause Micron's stock to tumble? Is Micron done?

1. Overcrowded Longs: As mentioned yesterday, in the three days leading up to the earnings report, it was obvious to everyone. Options activity was overwhelmingly skewed towards calls. This led many short-term traders to take profits and flee the moment the report dropped.

2. External Factors: A combination of external factors made both institutions and retail investors more cautious. Last night, we had the Federal Reserve meeting and renewed concerns over the Iran-Israel situation. Logically speaking, this month was supposed to be the timeline for Kevin Warsh to secure his nomination. But with Trump deeply entangled in war efforts, he hasn't had time to deal with Fed matters. Following this timeline, there could be changes to Warsh's nomination in April, sparking market concerns.

3. Great Report, But No New Catalyst: The financials were solid, with healthy revenue. However, there was no new incremental growth story—it's still all about memory and storage, nothing else. Simply put, there were no unexpected surprises.

4. The Strangest and Most Crucial Point: The company indicated that capital expenditures will increase in both 2026 and 2027. This exceeded the expectations of big institutional investors. Their thinking then becomes: if you're aggressively expanding capacity, does that mean pricing power and high premiums won't last? Translated, they're asking: Is this the peak for memory pricing? Increased supply implies future price declines.

5. Options Massacre: It's very likely these two days are just about an options massacre. Markets can swing either way to wipe out option holders. We'll see how it plays out tonight. I won't speculate on specific price targets here to avoid misleading anyone.

What's the outlook from here?

I'm definitely still bullish. The fundamentals are this strong. Following the original thesis, there shouldn't be any major issues at least until the end of the year. Over the next few days, we just need to wait for major investment banks to re-price Micron. As long as the core HBM (High Bandwidth Memory) story remains intact, the fundamental logic hasn't changed. The main headwind is still external factors that might drag on the stock price in the short term.

For short-term traders, I believe the market tonight should offer a decent exit opportunity.

This is just my personal opinion and does not constitute investment advice, please discuss rationally.