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Micron’s Stock Slides as AI Memory Boom Collides With Big Spending Fears

Investor doubts over peak margins meet management's message of lasting supply tightness.

Overview

  • Micron shares have fallen roughly 20% from recent highs, with another drop Monday, even after record fiscal Q2 results and a sharply higher outlook.
  • The company reported $23.9 billion in revenue and $12.20 in EPS for fiscal Q2, then guided to even stronger results as prices for DRAM and NAND surged.
  • Management says supply for DRAM and NAND will stay tight beyond 2026, and some customers are getting only half to two-thirds of the memory they want.
  • Micron plans to spend more than $25 billion in fiscal 2026 and to lift construction spending by over $10 billion in 2027 to expand high‑bandwidth memory for AI chips.
  • Analysts are split as efficiency headlines from Alphabet and TurboQuant pressure the stock, while Morgan Stanley and Bank of America back the long-term case and Cantor Fitzgerald cites upside with a $700 target.