Micron Just Printed the Earnings Report of the Decade — And It's Still Under 10x Earnings

Let's start with the elephant — or rather, the memory chip — in the room. $MU reported adjusted EPS of $25.11 vs. $20.49 expected, revenue of $41.46B vs. $35.69B estimated, and then guided Q4 to $49-51B in revenue vs. a street estimate of $43.24B. Gross margins hit 84.9% and are guided higher to 86%. The stock is trading at less than 10x earnings for a company that Seeking Alpha's quant model ranks #1 out of 529 IT sector stocks. Dan Ives of Wedbush calls the AI chip trade 'third inning, one out' with a demand-supply imbalance of 12-to-1. Hard to argue.

Elsewhere in the zoo: $KBH ripped 17% on earnings while the broader homebuilder index climbed 6% — but don't mistake this for a healthy housing market. It's K-shaped chaos: cash buyers snapping up $950K+ homes while first-timers are priced out of 268 cities with $1M+ entry-level prices. And yes, $WEN surged 28%+ because Reddit decided a fast food chain needed saving. Nearly 32% of its float was short, so here we are. The market contains multitudes.

The macro backdrop is oil sliding to $70/barrel, the Fed's stress tests clearing all 32 banks while freezing capital requirements until 2027, and Google losing four top AI researchers to Anthropic in a single week — which is the kind of brain drain that makes a $550 Microsoft price target feel less crazy by the day.