Micron Reports Record Revenue Amid Taiwan Labor Dispute

Micron Technology reported record fiscal 2026 results, with full-year revenue reaching $133.19 billion and fourth-quarter revenue of $54.23 billion. The company achieved earnings per share of $75.52 and operating margins exceeding 80%, fueled by high demand for AI servers and high-bandwidth memory. To sustain growth against predicted cyclical declines by fiscal 2029, the company implemented 26 Strategic Customer Agreements involving $150 billion in obligations and $32 billion in commitments.

Despite these financial gains, the company faces labor unrest at its critical manufacturing bases in Taiwan. The Taoyuan union is planning a strike vote after negotiations broke down on September 21. The union is demanding a permanent mechanism to allocate 15% of operating profit to employee bonuses, rejecting the company's current one-off payout structure. Micron stated it remains willing to talk and has scheduled mediation with the Taichung union for October 22.

Market analysis suggests the record profitability may be driven by extreme pricing rather than volume growth, leading to concerns about sustainability as supply constraints ease. Some estimates indicate the stock may be overvalued, with an intrinsic value calculated at $858.93 per share, roughly 21% below the current market price.