$MU down 1.67% intraday—recovered from -3% pre-market.
Everyone freaking out over gross margin dropping from 87% to 86.25%. CEO Sanjay rushed to TV: "Employee incentives rolled into next quarter's costs, that's why it looks low. Believe it or not."
CFO says Q1 is the floor for 2027 margins—will climb each quarter, just not as aggressively as before.
Earnings solid, price targets still rising. Key risk: supply-demand won't balance until 2027. Real danger zone is 2H 2028.
Short-term noise vs long-term setup. Watch the margin trajectory.
Everyone freaking out over gross margin dropping from 87% to 86.25%. CEO Sanjay rushed to TV: "Employee incentives rolled into next quarter's costs, that's why it looks low. Believe it or not."
CFO says Q1 is the floor for 2027 margins—will climb each quarter, just not as aggressively as before.
Earnings solid, price targets still rising. Key risk: supply-demand won't balance until 2027. Real danger zone is 2H 2028.
Short-term noise vs long-term setup. Watch the margin trajectory.