TLDR
- Micron stock has fallen ~15% in the four days since reporting blowout Q2 fiscal 2026 earnings
- Revenue hit $23.86 billion, nearly triple the $8.05 billion reported a year earlier
- CEO Sanjay Mehrotra says Micron can only supply 50% to two-thirds of what key customers need
- SK Hynix plans to spend ~$8 billion on EUV equipment from ASML and may raise $10 billion via a U.S. listing — putting pressure on Micron
- Analysts at Bank of America, Morgan Stanley, and JPMorgan all raised price targets after the report
Micron reported one of its strongest quarters ever last week. The market’s response? A 15% drop.
Since posting Q2 fiscal 2026 results on Wednesday, Micron stock has fallen four straight days. The selloff has puzzled some, given the numbers were anything but weak.
Revenue for the quarter came in at $23.86 billion — nearly three times the $8.05 billion Micron reported in the same period a year ago. The company also guided for gross margins of around 80% in the next quarter.
Despite the drop, Micron is still up over 300% in the past year. It remains the only tech company in the U.S. top 10 to be in positive territory year-to-date, with Oracle and Microsoft both down more than 20%.
Citi analyst Atif Malik pointed to profit-taking as the most likely driver of the selloff. “Higher FY27 capex and peak gross margin concerns (81% > Nvidia’s 75%) likely induced some profit taking after a strong stock run into the print,” he wrote.
Supply Can’t Keep Up With Demand
CEO Sanjay Mehrotra was candid about the supply situation when speaking to CNBC’s Squawk on the Street on Thursday.
“Memory today is very tight supply and supply cannot be brought up that easily,” he said. Key customers are currently receiving just “50% to two-thirds of their requirements.”
That crunch is tied to AI. Micron, SK Hynix, and Samsung control nearly all of the high-bandwidth memory market that AI chip makers like Nvidia and AMD depend on.
The surge in AI infrastructure spending has pushed memory prices up and kept supply stretched. Mehrotra said the company’s strong financial results are a direct reflection of that.
Bank of America, Morgan Stanley, and JPMorgan all lifted their price targets on Micron after the report, signaling Wall Street still sees upside despite the short-term stock pressure.
SK Hynix Adds Competitive Pressure
Adding to the noise this week, SK Hynix made two big announcements that rattled Micron investors.
The South Korean chipmaker filed a regulatory disclosure in Seoul on Tuesday saying it plans to buy around $8 billion in extreme ultraviolet (EUV) equipment from ASML by end of 2027 — a major bet on next-generation chip manufacturing.
At the same time, Korea Economic Daily reported that SK Hynix is considering a U.S. listing that could raise up to $10 billion. American investors currently have limited access to SK Hynix stock, with most exposure coming through OTC trading or ETFs like the iShares MSCI South Korea ETF.
A U.S. listing could shift how investors allocate within the memory sector. SK Hynix trades at a forward P/E of around 4.8 times, compared to 5.3 times for Micron, according to FactSet.
On Tuesday, Micron stock was down 2.4% in midday trading, extending its four-day losing streak following the earnings report.
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