Micron's Earnings Surprise
Outlook for Memory Semiconductor Supply Shortages
AI Bubble Concerns Persist Amid Big Tech Winners and Losers
Korea's AI Industry in Early Stages... Investments Continue
The quarterly earnings of Micron Technology, considered a bellwether for semiconductor performance, have significantly exceeded market expectations. With a positive outlook, some analysts predict that these results could quell the "artificial intelligence (AI) bubble" concerns recently reignited by Oracle and Broadcom. There is also a growing possibility that Samsung Electronics and SK Hynix will surpass expectations with their fourth-quarter earnings.
On December 17 (local time), Micron announced that for the first quarter of fiscal year 2026 (September to November 2025), it recorded revenue of $13.64 billion and adjusted earnings per share (EPS) of $4.78. Both revenue and EPS exceeded consensus estimates, which had forecast $12.95 billion in revenue and $3.95 in EPS. The company's guidance for the second quarter also surpassed market expectations.
Micron stated, "We have completed price and volume agreements for the entire supply of high-bandwidth memory (HBM) for 2026," expressing a positive outlook for the HBM market. The company emphasized that, especially in the AI era, the importance of memory semiconductors will continue to grow, as it is not possible to rapidly increase supply. Memory semiconductors are considered strategic assets required not only for AI data centers but also for various sectors such as autonomous vehicles and medical devices.
Micron's earnings announcement has put the brakes on debates over overheating in AI-related investments. By delivering results that exceeded market expectations and presenting an optimistic sales outlook for the next quarter, Micron reaffirmed that demand for memory used in AI servers is indeed expanding rapidly. Analysts point out that, since high-bandwidth memory volumes are already sold out at the contract stage, investments in AI infrastructure are unlikely to be a short-term trend.
As a result, there are projections that SK Hynix, which has a high proportion of HBM sales, could continue to set new quarterly performance records, driven by increased shipments of high-value-added products and rising prices. Samsung Electronics is also expected to see a greater improvement in its semiconductor division's performance compared to the previous quarter, as HBM supply expands alongside a rebound in general DRAM prices.
AI companies are continuing to expand their investments as competition intensifies. Elan Dekel, Director of Amazon's General Artificial Intelligence (AGI) Lab, commented, "With trillions of dollars being invested in AI data centers, some in the investment community are raising concerns about an AI bubble, but from the perspective of products and technology, AI agents are still at an inflection point." He added, "Given the impact AI is expected to have, this is not a bubble but rather just the beginning."
Within the domestic AI industry, the prevailing view is that it is "premature" to talk about a bubble. An official from a related organization said, "Even if there is a bubble, Korea is just getting started, so we have no choice but to invest." While uncertainties remain, the global competition in AI technology means there is no room to slow down. Recently, Vice Prime Minister and Minister of Science and ICT Baek Kyunghoon also stated during a press briefing, "There is no AI bubble, and there never will be."
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