From Seekingalpha · Oakoff Investments · · 50s
Micron: Don't Fear Chinese Memory Competition
Micron's DRAM guidance outperforms Chinese rivals despite yield pressures.
In brief
Micron's DRAM guidance outperforms Chinese rivals despite yield pressures. Micron projects $61.5 billion sales and 86.25% gross margins for fiscal Q1 2027, outpacing Chinese DRAM competitors. Originally reported by Seekingalpha.
Micron shares pullback
Micron shares experienced sharp pullbacks driven by macroeconomic yield pressures, local Taiwan union voting, and competitive fears surrounding Chinese DRAM developments.
China DRAM competition
I view the 'China panic' as overdone, with CXMT likely lagging in specs, qualifications, and yields versus established peers.
Advanced memory production
Advanced high-bandwidth memory production consumes 3-4x more silicon wafer area than standard DDR5, restricting industry supply and protecting pricing.
Fiscal Q1 2027 guidance
Fiscal Q1 2027 corporate guidance projects $61.5 billion in sales alongside exceptional 86.25% gross margins, serving as an annual baseline floor.
The takeaway
Micron projects $61.5 billion sales and 86.25% gross margins for fiscal Q1 2027, outpacing Chinese DRAM competitors.
/i.s3.glbimg.com/v1/AUTH_37554604729d4b2f9f3eb9ad8a691345/internal_photos/bs/2026/1/d/e0tBuBQiaj5t0cdmXHUA/foto29emp-301-vivenda-b7.jpg)
/i.s3.glbimg.com/v1/AUTH_63b422c2caee4269b8b34177e8876b93/internal_photos/bs/2026/W/a/tqIhseRHCeh4vsNHzovw/foto30pol-101-governa-a14.jpg)
