Micron forecasts strong revenue on AI boom, shares fall on higher spending plan

Micron Technology forecast third-quarter revenue well above Wall Street expectations after posting a sharp jump in the second quarter on booming demand for memory chips used in artificial intelligence systems, while tighter supply drove record earnings.

But ‌the company's $5 ⁠billion boost ⁠to its 2026 capital spending plan to keep up with the rising demand pulled the shares 4% lower in extended trading on Wednesday.

Micron aims to ​spend more than $25 billion this fiscal year and said this could rise further in 2027 as expansion in manufacturing facilities could ​result in construction-related expense climbing by more ⁠than $10 billion ‌from a year ago.


Customers are committing to ​long-term data ​center investments as technology companies race toward artificial general ⁠intelligence. The resulting growth in AI data center capacity ​is fueling a sharp rise in demand ​for advanced memory and storage.

Micron, whose shares have gained more than 61% this year, is one of the only three major suppliers of high bandwidth memory chips essential to AI technology, along with South Korea's Samsung and SK Hynix.

"The step-up in ‌our results and outlook are the outcome of an increase in memory demand driven by AI, structural ​supply constraints and ​Micron's strong execution ⁠across the board," CEO Sanjay Mehrotra said in his prepared remarks.

The chipmaker forecast third-quarter revenue of $33.5 billion, plus or minus $750 million, compared with ​analysts' average estimate of $24.29 billion, according to data compiled by LSEG.

It reported revenue of $23.86 billion for the second quarter ended February 26, beating expectations of $20.07 billion. Micron's board also approved a 30% increase to its quarterly dividend.