Particle.news
Download on the App Store

Micron Falls After Blowout Quarter as Capex Soars and AI Memory Stays Tight

Investors are focused on execution risk around Micron’s AI-driven capacity buildout.

Overview

  • Micron posted record fiscal Q2 results with $23.86 billion in revenue and $12.20 in adjusted EPS, and guided next quarter’s revenue to about $33.5 billion.
  • CEO Sanjay Mehrotra said the company cannot fully meet key customers’ near-term needs, with high‑bandwidth memory backlog effectively sold out through 2026 and HBM4 now shipping in volume.
  • Management outlined plans to spend more than $25 billion on capital projects in fiscal 2026 to expand manufacturing capacity for AI-focused memory.
  • Micron confirmed a five-year strategic supply agreement with Nvidia tied to the next-generation Vera Rubin AI platform, providing greater multi‑year visibility.
  • Shares fell roughly 4.8%–5% even as the company raised its quarterly dividend 30% to $0.15, and analysts largely maintained bullish views with some lifting price targets.