Micron has just turned in its strongest historical earnings report. In the fourth fiscal quarter, revenue came in at $54.23 billion, up roughly 379% year over year, and also up 30.8% sequentially—both significantly beating Wall Street expectations. Adjusted earnings per share were $33.42, with a gross margin of 87%—both ahead of market expectations.

The real standout is the data center segment: it generated $18.0 billion in a single quarter, compared with just $1.577 billion in the same period last year—an 11-fold increase.

But after the earnings release, the share price actually weakened. The issue lies in the guidance on gross margin: next quarter it’s expected to be 86.25%, below market expectations. The company attributes the decline to higher bonus and labor costs.

My take: this storage upcycle is genuine demand driven by AI computing power—not just another round of inventory speculation. That half-point drop in gross margin looks more like “earning too much means paying more in bonuses,” rather than a signal that demand has peaked.

Which do you care about more: the 11x growth rate in the data center segment, or the half-point gross margin shaved off by bonuses? $MUB #stock earnings season