BOISE, Idaho, March 19, 2026, 01:35 MDT
Micron Technology delivered all-time highs for both revenue and profit this quarter and projected another steep rise for the one ahead. Still, the stock slid around 5% in after-hours trading—investors balked as the memory-chip giant revealed an aggressive ramp-up in spending aimed at capturing AI demand.
This report carries weight far past a single quarter. Micron stands as one of just three big HBM suppliers—high-bandwidth memory stacked right next to AI processors—along with Samsung Electronics and SK Hynix. The company expects surging AI appetite to lift data-center demand for DRAM and NAND, the industry’s two main memory chip types, past 50% of the total addressable market for the first time in 2026.
Micron turned in adjusted earnings of $12.20 a share on $23.86 billion in revenue for the quarter ended Feb. 26, excluding certain items. Looking to the fiscal third quarter, the company is targeting revenue of $33.5 billion, give or take $750 million, with adjusted earnings expected near $19.15 a share. Gross margin is estimated at about 81%. The board also approved a 30% hike to the quarterly dividend, bringing it up to 15 cents a share.
“Memory is a defining strategic asset in the AI era,” Chief Executive Sanjay Mehrotra said. In notes released ahead of the call, Micron reported DRAM prices surged by about 60% to 65% quarter-on-quarter, with NAND prices up more than 70%. That jump sent non-GAAP gross margin to a record 74.9%.
The bill did the damage. Micron’s new forecast puts capital expenditures for fiscal 2026 at over $25 billion—about $5 billion higher than previously indicated—and with 2027 spending heading higher still as construction costs take off. “Construction activity is really driving a very significant increase” in spending, Chief Business Officer Sumit Sadana said in an interview with Reuters. Reuters
Some of that uptick is tied to Taiwan. Micron wrapped up its $1.8 billion acquisition of the Tongluo site from Powerchip, and now aims to kick off construction on a second facility there before fiscal 2026 closes. The company is also moving forward with fresh or expanded capacity in Idaho, New York, Singapore, and India.
Micron, on the call, drove home just how heavily its outlook leans on AI servers. The company said it’s now shipping its 36GB HBM4 in volume for Nvidia’s Vera Rubin platform. As for data-center NAND, Micron described demand as “significantly in excess” of supply for the foreseeable future — a setup that’s also playing in favor of Samsung and SK Hynix.
Creative Strategies CEO Ben Bajarin called the expanded spending plans “makes sense,” tying it to strong demand and Micron’s ongoing push to build out capacity, with no slowdown in sight. Shares had surged over 61% this year before the latest results landed. Reuters
The risk isn’t new. Memory markets are known for their wild swings between shortage and oversupply. Micron has already warned that PC and smartphone shipments could drop by a low-double-digit percentage in calendar 2026. Should AI demand falter or fresh capacity come online sooner than anticipated, pricing and margins might slip fast—even if Micron’s bet on tight supply past 2026 pans out.
