Micron Executives Cash Out Amid Record AI-Driven Performance

While Micron Technology is posting unprecedented financial results fueled by the artificial intelligence revolution, a contrasting trend is emerging at the highest levels of the company. Senior leadership, including the Chief Financial Officer, has been offloading substantial personal holdings, raising questions about the timing of these sales against a backdrop of soaring share prices and bullish analyst sentiment.

The memory chip manufacturer's performance for its first quarter of fiscal 2026, ending in November 2025, shattered expectations. Revenue reached $13.64 billion, representing a staggering 57% year-over-year increase. This surge was largely powered by cloud storage demand from data centers.

Management's forward guidance was even more remarkable. For the ongoing second quarter, Micron forecasts revenue of approximately $18.7 billion, which would equate to annual growth of 132%. Profitability metrics are also skyrocketing. The operating margin expanded to 47% last quarter from a previous 25%, with the company targeting a gross margin near 68% for the upcoming period.

Capacity Sold Out Through 2026

At the heart of this explosive growth is High Bandwidth Memory (HBM), a critical component for AI accelerators. The company has confirmed that its entire HBM production capacity for the 2026 calendar year is already fully allocated to customers.

In response, Micron has elevated its capital expenditure budget for 2026 to $20 billion. Industry projections for the total HBM market have been revised sharply upward, now expected to hit $100 billion by 2028—two years sooner than prior estimates. Micron's own share in this high-value segment has seen dramatic expansion, growing from 4% in 2024 to over 20% by early 2025.

Should investors sell immediately? Or is it worth buying Micron?

Wall Street's Enthusiastic Reception

Despite a powerful rally in the stock price, valuation multiples remain relatively modest. The shares currently trade at roughly nine times the expected earnings for 2026, with consensus estimates projecting earnings per share of $31.88.

This outlook has prompted major brokerages to revise their stances. Bank of America upgraded the stock from "Neutral" to "Buy," setting a $300 price target. Citigroup followed suit, also raising its target to $300. Overall, more than 90% of covering analysts recommend purchasing the shares.

Insider Selling Contrasts with Bullish Outlook

Concurrently, corporate insiders have been actively liquidating positions. CFO Mark Murphy executed a significant sale on October 30, 2025, disposing of 126,000 shares at an average price of $225.31 for total proceeds of $28.4 million.

This activity is part of a broader pattern. Over the past six months, Micron has recorded over 100 insider sell transactions, with zero documented open-market purchases by executives. CEO Sanjay Mehrotra also reduced his holdings by approximately 180,000 shares during this period.

Strong Fundamentals Meet Profit-Taking

Micron's operational momentum appears exceptionally strong, with sold-out capacity extending into 2027 and significant pricing power. However, the scale of insider divestment suggests that executives view current valuation levels as an opportune time to realize gains, even as business prospects seem bright. The contrast between a price-to-earnings ratio below nine and this wave of selling prompts market observers to consider whether future growth expectations are already fully reflected in the share price.