Andrew, Ben, and Tom discuss Micron&#x27;s blowout quarter with revenue up 346% to $41.5 billion, 84.9% gross margin, and DRAM/NAND supply now constrained through 2027, the implications of doubling CapEx to $40-50 billion in FY27, Trump&#x27;s $88 billion supplemental spending request for the Iran war, farmer aid, and Ebola, the canceled signing of the 21st Century ROAD to Housing Act, escalating Senate Republican tensions over Iran, the DOJ&#x27;s egg price-fixing settlement with Cal-Maine, the narrowing K-shaped economy spending gap, today&#x27;s PCE inflation print, and rates finally moving as oil drops below $70. Join our live YouTube stream Monday through Friday at 8:30 AM EST: http://www.youtube.com/@TheMorningMarketBriefing Please see disclosures: https://www.narwhal.com/disclosure

Micron Pops 19% on Insane AI Memory Demand + Trump's $88B Iran/Farmer/Ebola Ask | June 25, 2026 – Morning Market Briefing

The Morning Market Briefing

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**Podcast:** The Morning Market Briefing

## Transcript

Hey everybody, welcome to the Morning Market Briefing. It's Thursday, June 25, 2026. Hope you are doing well out there. Lots to get to today. We're going to jump right into it with Micron been up almost 20%. Insane numbers. How are we feeling about this run? We felt like it was going to be a big move one way or the other.

Yeah, I think this is one where people are going to get their percentages wrong because you know how you have to subtract one when it's over 100% or anything when you do a percentage. So we're up four and a half times, which is of course 350% year over year growth in Micron revenue. And the guidance for next quarter is for another 350% growth. 86% gross margin is what they're coming in at.

It's crazy. Unbelievable for a commodity. 82% operating margin. This is not sustainable. There's going to be competition that comes in. There's going to be capacity that's added. We already talked about SK Hynix raising $30 billion. So that's going to accrue to people like ASML and some of the capital equipment providers. But overall, they're saying, look, you need a ton of memory for AI because there's a ton more stuff being produced exponentially.

amounts of things being produced. And they're basically booked out not just for this year now, not just for next year, but now into 28. And they're signing long term supply agreements with companies with customers. Not something new, but the scale of it is just remarkable. Their data center business, they did $1.5 billion in revenue that last year. They're doing $11.5 billion in this quarter this year. That's true. So you're up from $1.5 billion in a year.

Well, your volume is up like 15%. The rest is price. Because the price is doubling every quarter. And they continue to, interestingly, on their guide, obviously blowing through previous guidance, but noting that they expect constraints to continue further out into the future beyond calendar year 27 is what they noted.

Yeah. And it's really remarkable to me just to consider the amount that it's basically a bidding war right now. There's a bidding war in terms of companies getting memory chips. That's all there is because the volume is the volume. The capacity is the capacity. It's growing low single digits on a quarter over quarter basis, which doesn't compound to phenomenal growth.

It's not like NVIDIA that's growing volume like crazy. It's all price. And that's got to come home to roost at some point. I mean, this is basically the Strait of Hormuz with chips. I mean, it's not dissimilar, right? I mean, there's only so many they can get through and everybody wants them. And so... And Micron's dropping landmines all over the place. Yeah. Those who are strategically tied to that commodity, like oil, the chip game is becoming...

I mean, we're... How about we get a tweet? Let's get a price gouging tweet. The price of chips must come down. We need more chips for a bag, ...

Micron Pops 19% on Insane AI Memory Demand + Trump's $88B Iran/Farmer/Ebola Ask | June 25, 2026 – Morning Market Briefing

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Micron Pops 19% on Insane AI Memory Demand + Trump's $88B Iran/Farmer/Ebola Ask | June 25, 2026 – Morning Market Briefing

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.