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Micron Crushes Q2 and Hikes Outlook as AI Memory Demand Outpaces Supply

Early HBM4 production signals an aggressive capacity build as industry tightness persists.

Overview

  • Micron reported fiscal Q2 revenue of $23.86 billion and adjusted EPS of $12.20, topping estimates and setting records for revenue, margin, earnings and free cash flow.
  • For Q3, the company guided to about $33.5 billion in revenue and $19.15 in adjusted EPS, far above Wall Street expectations.
  • Management raised fiscal 2026 capital spending to roughly $25 billion and said outlays will climb further in 2027, while approving a 30% increase to the quarterly dividend.
  • Micron said its 36GB HBM4 has entered high‑volume production ahead of schedule, securing supply for Nvidia’s upcoming Vera Rubin AI platform.
  • HBM supply remains constrained with 2026 output effectively sold out and Micron able to fulfill only about 50%–66% of large customers’ needs, and researchers caution shortages could persist into 2027.