Micron shows strong financial performance (revenue/profit/margins) but faces uncertainty regarding whether it remains a cyclical commodity business.

Let's talk about some good news at Micron. They are working at full capacity there. One of the comments I see about this report is from Ross Gerber, who I know was with us on air, saying that Micron is a real monster.

Amazing numbers and constantly improving. He says it is no longer a company with a volatile business cycle .

I don't know if I should say that, because many people see it as just a longer course. Yes, we talked about this on our show, Diane, and I think this was one of the key factors, because this sector has historically been a cyclical sector or a commodity in the technology field, and perhaps it won't remain so, and that 's the concern.

Remember that they are ramping up production as much as possible to meet demand, but they will also work to increase production capacity over the next two years.

But Micron has once again made huge profits, which is why the stock has risen by more than 270% so far this year. The stock is holding steady today, with a slight decline, but revenues reached 54.23 billion, exceeding estimates that were around 51 billion.

Adjusted earnings per share were 33.42, compared to expectations of less than $32. Therefore , it was a strong advantage. Full-year revenues for 2026 amounted to approximately 133.2 billion.

This represents a 256% year-on-year increase. The revenue figure of 54.23 billion was up 379% year-on-year and 31% quarter-on- quarter.

So, this is really good. And if you look at the margins. This was one of the things that investors were watching. When will the margins stabilize?

Well, the gross profit margins reached 87%. This was even higher than the unannounced figures that some had predicted. Then there is the data center sector, which has made a huge leap, with margins reaching 90%. So, everything is going well.

They have raised their expectations for the coming period. As you know, ratings are still an open question for this company. We are in the single digits with respect to this company's forward price-to-earnings ratio .

They are offering better forecasts for the future , predicting continued expansion in 2027.