Micron promises to tackle memory shortages by significantly boosting capital expenditures—investors remain skeptical

Micron Technology — Q2 2026 Fiscal Year Report

Key facts

1. Strong revenue growth
Micron tripled its revenues compared to the previous year, and profits nearly doubled.

2. Balanced growth across segments
Revenue grew in all four core areas:

* Cloud services – 2.6×;
* Data centers – 3.1×;
* Mobile and consumer solutions – 3.5×;
* Automotive and embedded electronics – 2.6×.

The server segment (cloud + data center) accounted for more than 56 % of total revenue.

3. Capital‑expenditure increase
Management announced a need to significantly raise CAPEX to address memory shortages, which caused the stock to fall 4.43 % after market close.

4. Plans for the next quarter and year
* Revenue is expected to grow by more than 200 % to $33.5 billion – above analysts’ forecast ($24.3 billion).
* In the next fiscal year (starting in the fall), CAPEX is planned to increase by over $10 billion:
- construction of new fabs in Idaho and New York;
- the first site will begin production mid‑next year, with New York production starting in the second half of 2028.
* The deal with Taiwan’s PSMC will require additional investment.

5. Partners and new technologies
Micron already supplies HBM4 to Nvidia; next year it plans to launch HBM4E for Feynman‑generation accelerators (2028) – meaning the company will need closer collaboration with Nvidia in preparation for mass rollout.

Conclusion
Micron demonstrates impressive revenue and profit growth, but to maintain its memory market position the company must substantially increase capital spending. This has short‑term negative impact on share value, yet the long‑term strategy involves expanding manufacturing capacity and developing new products jointly with Nvidia to address memory shortages and strengthen the company’s market standing.