Micron’s Growth Is Limited By Sold Out HBM (Rating Downgrade)

Summary:

• Micron’s Q1’25 earnings met estimates, but Q2’25 guidance fell short, leading to a -16% after-hours selloff; revenue guidance is $1B below consensus estimates.
• Capital investments are forecast to grow by 70% for FY25 driven by expanding DRAM & HBM capacity and new facility builds.
• Despite strong data center performance, the consumer market may not recovery as anticipated as a result of limited consumer discretionary spending.

Micron Q1 Earnings

Micron Technology (NASDAQ:MU) reported q1’25 earnings results in line with estimates; however, management’s guidance for eq2’25 came in significantly below market expectations, leading to a -16% selloff in the after-hours market. Management’s eq2’25 revenue guidance is $1b below consensus estimates of $8.9b, suggesting that growth

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