Micron

In the quarter ended May 2026, Micron brought in 41.46 billion dollars of revenue. A year earlier the same quarter produced 9.30 billion dollars. That is more than four times bigger in twelve months. Profit came in at 28.24 billion dollars, and cash generated from operations reached 25.39 billion dollars against 4.61 billion a year ago.

Micron has signed what it calls Strategic Customer Agreements, which means the big AI buyers are committing to purchase memory ahead of time rather than shopping around. Net margins have reached almost 56 percent, meaning more than half of every dollar of sales becomes profit. Even after the enormous run, the stock trades at about 22 times earnings.

This industry has boomed and busted for forty years without exception. Prices spike when supply is short, every manufacturer races to build new factories, and then prices collapse. Micron lost money as recently as 2023. Buying after revenue has quadrupled means buying near the top of the best cycle the industry has ever had.

The stock swings about twice as hard as the market in both directions. A single quarter where memory prices soften could take a large bite out of the share price very quickly, because so much good news is already reflected in it.