Micron’s shares declined more than 4% ahead of market open as investors reacted negatively to the company’s increased capital expenditure plans, overshadowing strong AI-driven financial results.
The chipmaker raised its 2026 capital spending by $5 billion, bringing total planned investment to over $25 billion. It also signaled further increases in 2027, with manufacturing expansion expected to significantly raise construction-related costs.
Despite the spending concerns, Micron reported better-than-expected quarterly results and issued a strong revenue forecast, supported by growing demand for high-bandwidth memory used in artificial intelligence systems.
However, investors remain cautious, with some viewing current earnings levels as potentially unsustainable. The increased production capacity could ease current memory shortages over time, potentially returning the sector to more competitive pricing dynamics.
