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Micron’s Blowout Quarter Runs Into Stock Selloff as Spending Jumps

Investors balk at a 2026 budget above $25 billion to chase scarce high‑bandwidth memory.

Overview

  • Micron posted fiscal Q2 revenue of $23.86 billion and adjusted EPS of $12.20, setting records for revenue, gross margin and free cash flow.
  • The company guided fiscal Q3 to about $33.5 billion in revenue and roughly $19.15 in adjusted EPS, well ahead of Wall Street forecasts.
  • Management raised fiscal 2026 capital expenditures to more than $25 billion and projected a meaningful step‑up in 2027, including over $10 billion more in construction costs.
  • Executives said Micron can meet only about 50% to two‑thirds of some key customers’ mid‑term requirements, highlighting a tight HBM market dominated by Micron, Samsung and SK Hynix.
  • Micron began volume shipments of HBM4 for Nvidia’s Vera Rubin platform, yet the stock fell 4%–6% on Thursday as investors weighed the heavier spending plans.