Micron Shares Fall to $404 as Higher Capital Spending Plans Overshadow Record Earnings

Micron Technology Inc. closed at 404.35 dollars on March 23 after falling 18.53 dollars or 4.38% from the prior close of 422.88 dollars. The session saw trading between roughly 401 dollars and 444 dollars with volume reaching nearly 23 million shares. The stock had touched a 52-week high of 471.34 dollars earlier this month before pulling back.

Credit: Micron

The decline follows the company’s fiscal second-quarter results released after the market close on March 18.

Micron posted record revenue of 23.86 billion dollars along with new highs for gross margin, adjusted earnings per share and free cash flow.

The figures beat analyst estimates and reflected strong demand for memory chips used in artificial intelligence systems combined with tight industry supply.

For the current fiscal third quarter Micron guided revenue to approximately 33.5 billion dollars plus or minus 750 million dollars well above consensus forecasts near 24 billion dollars.

The company said on its investor relations site that it expects significant records again in fiscal Q3.

Its board also approved a 30% increase in the quarterly dividend.

“In the AI era memory has become a strategic asset for our customers and we are investing in our global manufacturing footprint to support their growing demand. Reflecting confidence in the sustained strength of our business our board has approved a 30% increase in our quarterly dividend” said Sanjay Mehrotra chairman president and chief executive officer of Micron Technology.

Investors focused instead on the spending outlook.

Micron raised its fiscal 2026 capital expenditure plan by 5 billion dollars to more than 25 billion dollars and signaled further increases for 2027 to keep pace with demand.

Reuters reported that the added outlays to expand production capacity weighed on sentiment even as the results topped expectations.

This move suggests the company is committing to long-term supply growth in an environment where memory remains a strategic asset for AI customers. Micron separately announced high-volume production of HBM4 memory designed for NVIDIA’s Vera Rubin platform as well as completion of an acquisition in Taiwan to bolster manufacturing.

Wall Street analysts continue to rate the shares a strong buy with an average price target of 515 dollars. The latest update from JP Morgan raised its target to 550 dollars while maintaining an overweight rating.