Overview
- Micron shares have dropped about 15% since Wednesday’s blowout report, as Wall Street focuses on plans to spend more than $25 billion in fiscal 2026 to expand capacity.
- The company posted record fiscal Q2 results with $23.86 billion in revenue and $12.20 adjusted EPS, and it guided to roughly $33.5 billion next quarter with gross margins near 80%.
- Management says supply remains tight, with key customers receiving only about half to two‑thirds of the memory they want and the high‑bandwidth memory backlog booked through 2026.
- Micron has begun volume shipments of HBM4, a next‑generation stacked memory used alongside AI processors to move data faster and raise system performance.
- A five‑year supply deal with Nvidia and a 30% dividend increase to $0.15 per share signal strong demand and cash generation, though memory’s cyclical history and long build times for new HBM capacity could pressure margins when more supply arrives.