Shares of Micron Technology Inc. (MU Quick QuoteMU - Free Report) rose 10.1% on the bourses during the last trading session after releasing better-than-expected first-quarter fiscal 2026 results. The company surpassed analysts’ estimates on both top and bottom-line counts. 

The solid post-earnings share price performance of this leading semiconductor company underscored investors’ optimism regarding the delivery of record revenues and meaningful margin expansion in the fiscal first quarter.

This share price gain may encourage investors to increase their asset allocation in MU. However, it is important to note that in late 2024 and early 2025, the NAND flash market experienced severe oversupply, leading to falling prices and compressed profit margins for manufacturers. To tackle this headwind, Micron Technology decisively reduced its NAND wafer starts and slowed the pace of technology node transitions to align supply with demand trends, which limited its overall earnings upside during this period, to some extent. 

Although conditions have improved and MU is once again gaining momentum in the NAND flash market, any recurrence of such unprecedented, industry-wide events (beyond the control of a single company) could result in unforeseen losses to a portfolio. Meanwhile, Micron’s management expects memory supply constraints to affect some of its PC unit shipments next year.

This outlook further creates a compelling case for investors to favor technology exchange-traded funds (ETFs) with high Micron weightings rather than a concentrated bet on the stock itself. By opting for an ETF, you gain the strategic advantage of participating in Micron’s record-breaking margin expansion and AI-driven growth while simultaneously diversifying across other tech giants. 

This approach will allow you to harvest the tech sector's collective profits while shielding your portfolio from the 'single-stock' volatility and supply-chain constraints that can occasionally hamper even the strongest industry leaders. 

Before reviewing the ETFs for potential portfolio inclusion, let us analyze Micron’s fiscal first-quarter performance across other key metrics.

A Brief Analysis of MU’s Q1 Results

Micron Technology’s fiscal first-quarter earnings beat the Zacks Consensus Estimate by 22.3% and jumped 167% year over year. Its revenues increased 56.7% year over year and surpassed the Zacks Consensus Estimate by 7.3%. 

Segment-wise, revenues from its Cloud Memory Business Unit soared 99.5% from the year-ago quarter, while those from MU’s Core Data Center Business Unit rose 3.8%. On the other hand, Mobile and Client Business Unit’s revenues rallied 63.2% year over year, whereas revenues from the Automotive and Embedded Business Unit improved 48.5%. 

MU exited the reported quarter with cash and equivalents worth $9.7 billion, along with long-term debt of $11.19 billion.  The company generated an operating cash flow of $8.4 billion in the fiscal first quarter. 

Looking forward, MU’s management anticipates higher pricing, lower cost structures, and a favorable product mix, supporting gross margin expansion in the fiscal second quarter.

For fiscal 2026, the company expects to spend approximately $20 billion in capital expenditures, weighted toward the second half of the fiscal year.

Micron-Heavy ETFs to Buy

First Trust NASDAQ Semiconductor ETF (FTXL Quick QuoteFTXL - Free Report)

This fund, with net assets worth $1.28 billion, offers exposure to 31 U.S. semiconductor companies. Of these, Micron Technology has the first spot, holding 12.91% of the fund. 

FTXL has surged 43.9% year to date. The fund charges 60 basis points (bps) as fees. It traded at a volume of 0.04 million shares in the last trading session. This fund holds a Zacks ETF Rank #2 (Buy). 

iShares Semiconductor ETF (SOXX Quick QuoteSOXX - Free Report)

This fund, with net assets worth $17.18 billion, offers exposure to 30 U.S. companies that design, manufacture and distribute semiconductors. Of these, Micron Technology carries the third spot, holding 6.87% of the fund. 

SOXX has soared 36.5% year to date. The fund charges 34 bps as fees. It traded at a volume of 6.53 million shares in the last trading session. This fund sports a Zacks ETF Rank #1 (Strong Buy). 

VanEck Semiconductor ETF (SMH Quick QuoteSMH - Free Report)

This fund, with net assets worth $37.99 billion, offers exposure to 26 companies involved in semiconductor production and equipment. Of these, Micron Technology carries the fourth spot, holding 6.88% of the fund. 

SMH has soared 43.4% year to date. The fund charges 35 bps as fees. It traded at a volume of 8.17 million shares in the last trading session. This fund sports a Zacks ETF Rank #1. 

Invesco PHLX Semiconductor ETF (SOXQ Quick QuoteSOXQ - Free Report)

This fund, with net assets worth $817.7 million, offers exposure to 31 largest U.S.-listed securities of companies engaged in the semiconductor business. Of these, Micron Technology carries the fourth spot, holding 6.36% of the fund. 

SOXQ has rallied 38.6% year to date. The fund charges 19 bps as fees. It traded at a volume of 0.54 million shares in the last trading session. This fund sports a Zacks ETF Rank #1.