On April 16, Micron Technology fell 3.28% pre-market, trading at approximately $441.8/share, with trading volume of around $270 million. The decline followed the release of the company's fiscal Q2 earnings report.
Micron posted fiscal Q2 revenue of $23.86 billion, surging 196% year-over-year, with gross margin reaching 74.4%. DRAM, accounting for 79% of revenue, delivered $18.8 billion in sales, up 207% YoY, driven by explosive AI server and data center demand alongside a 65%-67% sequential price increase. Despite the blowout quarter, the company raised its fiscal year capital expenditure guidance from $20 billion to $25 billion, with an additional $10 billion-plus increase projected for fiscal 2027. The aggressive spending plan, aimed at expanding production capacity, appears to have weighed on investor sentiment as the market digests the implications for near-term free cash flow amid an intensely competitive landscape dominated by Samsung and SK Hynix. The broader semiconductor sector also traded lower, with NVIDIA down 0.82% and Broadcom off 1.4%.
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