Micron's Booming Quarter, Dividend Boost, and AI Chip Shortage

0:00Micron technology just posted one of its best quarters ever, with revenue hitting $23.86 billion nearly three times. Last year's bigger. Gross margins are on track to reach around 80% next quarter. Yet the stock has dropped about 17% since the report, sitting well off its 52-week high. The company boosted its quarterly dividend to $0.15 per share, up 30% from a year ago. That gives a tiny yield right now, but with a payout ratio under 2% and strong free cash flow, Micron has plenty of room to ramp up dividends in the coming years. Wall Street loves it anyway, with 26 out of 28 analysts rating it a buy and an average price target of $5.36, $1.55 suggesting 40% upside. The shares are up 21% this year, and over 300% in the past 12 months. Behind the scenes, explosive demand for memory chips in AI servers and data centers is overwhelming supply for Micron and rivals.

1:03Executives say the shortage will drag on past 2026, as new factories in Taiwan, the United States in Singapore, won't add meaningful. Capacity until fiscal 2028 at the earliest. Micron's heavy spending, now over $25 billion on expansions, positions it perfectly amid this crunch, blending short-term pricing. Power with long-term growth in AI and beyond. That's your Durham News Today update, AI powered, and always on.