Micron Technology (MU)

The sleeper story isn't the record quarter, it's that Q1 FY27 gross margin is guided DOWN sequentially to 86.25% from 87%, and management's own words explain why: incentive comp got capitalized into Q4 inventory and will hit COGS as roughly $1 billion of cost next quarter. The obvious headline, record revenue, record EPS, tighter-for-longer supply, is real, but the binding constraint has shifted from demand to construction lead time, with management explicitly noting CapEx is skewing to construction because clean rooms, not chip demand or even equipment, are now the gating factor. The line that should worry the desk most: 'we do not have line of sight to when supply and demand will return to balance', repeated verbatim from last quarter, meaning Micron itself can't model its own normalization risk two quarters running. My view changes if Q2 FY27 gross margin snaps back above 87% as promised (confirming the comp/inventory issue was transitory) and if management finally attaches a concrete buyback dollar figure after December 9, rather than repeating the same 'over time, 100%' boilerplate a third consecutive quarter.