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Micron Lifts Outlook and Spending as AI Memory Shortage Deepens

The company says it can meet only about half to two-thirds of key customers’ midterm needs.

Overview

  • Micron posted Q2 revenue of $23.86 billion and EPS of $12.20, with record margins and guidance pointing to roughly 80% gross margin next quarter.
  • The company guided Q3 revenue to about $33.5 billion and EPS around $19.15, both far above Wall Street forecasts.
  • Fiscal 2026 capital spending was raised by $5 billion to more than $25 billion, with a further step-up flagged for 2027 to expand HBM and DRAM capacity.
  • Shares fell roughly 4%–5% after the report as investors focused on the larger capex plan and the debate over whether margins have peaked.
  • Analysts boosted targets — Citi and UBS to $510 and some to $700 — citing durable AI-driven demand, concentrated HBM supply among Micron, Samsung and SK Hynix, and new multi-year customer agreements including a five-year deal.