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Micron Warns of AI-Memory Shortfall After Record Quarter

The company is boosting capacity with more than $25 billion of fiscal-2026 investment to close the gap.

Overview

  • Micron reported fiscal Q2 revenue of $23.86 billion with adjusted earnings per share of $12.20, both records.
  • Management guided to roughly $33.5 billion in revenue for fiscal Q3, pointing to sustained AI-driven demand.
  • CEO Sanjay Mehrotra said key customers are receiving only about 50% to two-thirds of the supply they need.
  • HBM3E and upcoming HBM4 products are reported to be sold out for 2026, reflecting tight high-bandwidth memory supply.
  • Capital spending is set to exceed $25 billion in fiscal 2026 to expand output, as investors weigh whether added capacity could pressure future pricing and margins after a 162% six-month stock surge to about $440.