Micron shares declined around 5% as investors reacted to the company’s increased spending plans, overshadowing strong earnings driven by artificial intelligence demand.
The chipmaker reported robust results, supported by soaring demand for high-bandwidth memory used in AI data centers. Tight supply conditions have pushed prices higher, helping Micron achieve record profit margins.
However, the company plans to significantly increase capital expenditure, raising its 2026 investment by $5 billion to more than $25 billion, with further increases expected in 2027. Much of the spending will go toward expanding manufacturing capacity and building new facilities.
The higher investment signals confidence in long-term demand but has raised concerns among investors about future profitability and whether current margins can be sustained as supply increases.
Micron remains one of the key global suppliers of advanced memory chips, alongside Samsung and SK Hynix, positioning it at the center of the AI infrastructure boom.
