📉 Micron: Margins overshadow great numbers! 🧠💾
US semiconductor giant Micron Technology $MU released its second fiscal quarter results and the numbers certainly didn't disappoint for me. Revenue was up by 38 %, earnings beat analysts' expectations and the company offered a strong outlook for the period ahead. Still, the stock lost over 8 %due to margins.

📊 Overview of important numbers:
Q2 revenue: $8.05 billion (expected $7.91 billion)

Q2 adjusted earnings per share: $1.56 (expected $1.43)

Q3 revenue outlook: approx. USD 8.8 billion (expected USD 8.55 billion)

Q3 earnings outlook: approx. $1.57/share (expected $1.48)

Q2 gross margin: 37.9% (expected 38.4%)

Expected Q3 margin: 36.5% (also below expectations)

While the company reported solid growth, the market focused on a minor decline in gross margin, which stems primarily from pressure in the segment NAND flash memory segment. These chips are used in storage applications - from SSD drives to smartphones - and are currently in a weaker phase of the cycle.

But Micron defends that this is just a temporary condition. "Once the NAND situation improves, you will see a much better trajectory," said executive vice president Sumit Sadana.

🚀 AI memory as a growth engine
The main thing driving Micron forward is the growing demand for HBM memories (High Bandwidth Memory)which are used in artificial intelligence systems. This segment is becoming an essential pillar for data centers that run AI models and training infrastructure.

More good news!
Data center revenue tripled year-over-year.

HBM memory revenue exceeded $1 billion for the first time in the quarter.

CEO Sanjay Mehrotra expects record revenues and a significant improvement in profitability in 2025.

Micron is showing that it is not just a traditional player in memory chips, but a key part of the infrastructure of the modern AI era. It competes in the HBM memory space with players like SK Hynix and Samsung $SMSN.L, but there is room for everyone thanks to growing market demand.

Margins may have disappointed, but given that demand for AI is growing rapidly, production efficiency and pricing power can be expected to improve. In that case, the current stock slump may appear to be an attractive entry opportunity.

Micron is doing better in my view than the market reaction would suggest. The company is beating expectations, strengthening its position in the AI ecosystem and reporting an optimistic outlook. Yes, margins have disappointed a bit, but fundamentals remain solid. And if growth expectations in the data center and HBM, the current price could be an interesting opportunity.

What's your take on this company? Has anyone taken advantage of the downturn?