Particle.news
Download on the App Store

Micron Lifts Capex Above $25 Billion After Record Quarter as AI Memory Shortage Deepens

Long‑term supply deals signal a tight memory market lasting well beyond 2026.

Overview

  • Micron reported roughly $23.9 billion in Q2 revenue and $12.20 adjusted EPS, and guided Q3 to about $33.5 billion in sales and $19.15 EPS, all well above forecasts.
  • The company raised fiscal 2026 capital spending by about $5 billion to more than $25 billion and indicated a further increase in 2027, with construction outlays up by over $10 billion year over year.
  • CEO Sanjay Mehrotra said key AI customers will receive only about 50% to two‑thirds of requested memory in the midterm, highlighting tight supply across DRAM, NAND and HBM.
  • Micron closed the Tongluo, Taiwan site purchase to support meaningful shipments starting in fiscal 2028, and said its Singapore advanced packaging facility will add materially to HBM supply in 2027.
  • Shares fell roughly 4%–5% on spending and peak‑margin worries even as Citi, UBS and others raised price targets and Micron lifted its quarterly dividend 30% to $0.15.