Micron Delivers Record Q2 Results, Despite Stock Dip Due to Spending Plan Concerns

Micron Technology announced record second-quarter earnings with tripled revenue and tightened supply. However, the stock price fell due to concerns over a $25 billion spending plan. Some analysts expect supply to remain constrained through 2026, with HBM pricing potentially normalizing in 2027.

MU reported exceptional fiscal Q2 2026 results, with revenue hitting a record $23.86 billion — up 196% year-over-year and 75% sequentially — driven by surging demand for AI-related memory and storage products . Adjusted earnings per share came in at $12.20, handily beating the $9.31 consensus estimate, while gross margins reached record levels on tight supply conditions and favorable product mix.

Despite the blowout earnings, MU shares declined in after-hours trading as investors focused on the company's $25 billion capital spending plan. With shares having tripled in 2025 and gained another 62% year-to-date, the valuation already prices in significant AI-driven growth. CEO Sanjay Mehrotra attributed the results to 'an increase in memory demand driven by AI, structural supply constraints and Micron's strong execution across the board.'

Multiple analysts raised price targets following the report, with firms including Morgan Stanley, Wells Fargo, BofA, and BNP Paribas updating their forecasts . The key debate for investors centers on whether Micron's massive capex cycle will generate proportional returns or pressure margins in future quarters. The stock's post-earnings weakness may present an opportunity for investors who believe AI memory demand will sustain the current growth trajectory.