Micron’s shares fell more than 4% premarket despite reporting record quarterly earnings fueled by soaring demand for AI memory chips.
The chipmaker announced a $5 billion increase in its 2026 capital spending plan, pushing total investment to over $25 billion-with further hikes expected in 2027 as it expands manufacturing capacity. Construction costs alone are projected to rise more than $10 billion year-over-year.
Micron topped Wall Street forecasts with a $33.5 billion revenue outlook for the next quarter, far exceeding the $24.29 billion average estimate. Its profit margins soared as global tech giants poured capital into AI data centers, tightening supply of high-bandwidth memory.
But analysts warn the surge in capacity may end the memory shortage. "Investors wager that these are peak earnings and will be unsustainable," said Mike O'Rourke of JonesTrading.
Micron is one of only three global suppliers of AI memory chips, alongside Samsung and SK Hynix. Both Korean rivals also saw shares drop over 3.8% Thursday. U.S. peers Western Digital, Seagate, and Sandisk fell 2% to 4% in premarket trading.