MU First Take: Revenue and GPM beat, driven by broad-based price hikes across memory. DRAM and NAND each rose ~20% QoQ this quarter.

Details: DRAM growth was mainly price-led, with shipments flat QoQ. As AI capex extends into NAND, the segment saw both volume and price up, with shipments +~7% QoQ and ASP +~14% QoQ.

More important than the print, the key highlight was guidance for next quarter. Both metrics came in well above Street expectations.

MU guides revenue around $18.8bn next quarter, up ~$5.0bn QoQ, still driven by higher volumes and pricing. With ongoing price increases, GPM is guided to ~67%, a new company high.

With smartphones and other legacy end-markets steady, this upcycle is being powered by AI demand spilling over from HBM into DDR and NAND. That spillover is lifting the broader memory complex.

The recent pullback in the stock partly reflected debate over the durability of memory pricing. This upside guidance should restore confidence in the near term.

Memory remains cyclical, but sustained AI demand should underpin the market and keep this upcycle intact. For more, follow Dolphin Research's follow-up commentary and management Trans. $Micron Tech(MU.US)