A key stock in the AI race just smashed earnings expectations…
- Revenue hit $54.23 billion, up from $41.46 billion last quarter and nearly 5x the $11.32 billion from a year ago.
- Full-year revenue topped $133 billion, versus $37.38 billion the year before.
- Management expects fiscal 2027 to be even stronger, citing long-term agreements that add durability to the AI memory boom.
This is the #1 AI stock on my watchlist.
AI is still center stage.
Earlier this week, we learned of a $235 billion buyback from NVDA, plus a new tool to stop AI agents from going rogue.
And now an earnings report from a major AI-memory company…
Things are heating up.
AI Earnings
On September 30 during after hours, Micron Technology, Inc. (NASDAQ: MU) announced earnings.
And it soared past Wall Street’s expectations…
- Earnings per share came in at $33.42, ahead of the $31.83 analysts expected.
- A year ago, Micron earned $3.03 per share. That’s roughly an 11x jump.
- Revenue of $54.23 billion topped the $51.49 billion consensus.
And the future outlook was even better…
Micron expects next quarter’s revenue between $60 billion and $63 billion. Wall Street expected about $56.77 billion.
The reason MU’s numbers are so strong: AI runs on memory. And that’s Micron’s main business.
Every AI data center needs enormous amounts of high-bandwidth memory to feed GPUs, plus ultra-fast flash storage. Micron makes both. It’s one of just three major memory makers, alongside Samsung and SK Hynix.
Shares are up roughly 275% this year and about 550% over the past 12 months.
The numbers speak for themselves. AI demand isn’t slowing down, and Micron is in a perfect position to bank.
The Trade I’m Watching
Micron is already on a mind-bending run this year.
It’s up 275% in 2026 and 193% in the last 6 months. And the price is consolidating just under the all-time highs, making higher lows week after week.
The price didn’t move much in response to the recent earnings report…
Wall Street hasn’t chosen a direction … yet. But once it does, based on the size of this report, the reaction could be big.
I love big reactions in the market.
When stocks trade with volatility, the options contracts move exponentially.
Volatile stocks = Bigger trading gains
Remember, I like reversion trades. When stocks extend too far in one direction, they eventually pull back. I plan to wait for an oversized move, then play the pullback.
Wait for MU to choose a direction. Then look for the point of exhaustion that leads to a pullback.
Stay Street Smart,
Jeff Zananiri
