Overview
- Following Thursday’s sector selloff, Micron extended its drop to roughly the high‑teens from last week’s peak despite reporting standout results.
- Micron posted fiscal Q2 revenue of about $23.9 billion, up roughly 196% year over year, with $12.20 in EPS and guidance that points to around $33.5 billion next quarter as gross margins trend toward about 80%.
- Management lifted this year’s capital spending plan to more than $25 billion to expand high‑bandwidth memory and DRAM capacity, yet executives said meaningful new output will not arrive until 2028 and supply should stay tight beyond 2026.
- Wall Street remains broadly positive with consensus targets implying about 30%–40% upside, Mizuho and Morgan Stanley called the downdraft a buyable dip, and Jim Cramer urged investors to wait for a deeper pullback after a roughly 300% year surge.
- Rival build‑outs at SK Hynix and Samsung and talk of efficiency gains like Google’s TurboQuant stoked demand worries, though analysts framed such software optimizations as incremental, and some pointed to equipment makers such as ASML, Applied Materials, and Lam Research as likely beneficiaries of new memory fab builds.