Micron Stock Falls Despite Blowout Q2 Results — Retail Sentiment Dips On Earnings Predictability, Capex Concerns

• The memory chip-maker’s revenue nearly tripled to $23.86 billion from $8.05 billion in the same period of 2025. 
• Mehrotra said Micron’s record results were attributable to an increase in memory demand, driven by AI and structural supply constraints.
• Retail users on Stocktwits flagged that the strong earnings results were expected, and also voiced concerns over the company’s high capital expenditure.

Shares of Micron Technology Inc. (MU) fell more than 2.5% in Wednesday’s post-market session despite the company’s second-quarter (Q2) 2025 earnings results that blew past Wall Street expectations.

The memory chip-maker’s revenue nearly tripled to $23.86 billion from $8.05 billion in the same period of the previous fiscal year. Meanwhile, analysts had forecast a revenue of $19.18 billion, according to Fiscal.ai. Earnings also beat consensus estimates, coming in at $12.20 per diluted share, compared to a Street projection of $8.66 per share.

However, retail users on Stocktwits flagged that the strong earnings results were expected, while also voicing concerns over the company’s high capital expenditure.

Capital Expenditure

Micron posted capital expenditures of $5 billion for the quarter, an increase of about 62% from the same period last year. For the upcoming quarter, the company projected capex of about $7 billion, and said full-year 2026 capital spending would be above $25 billion.

President and CEO Sanjay Mehrotra said in a call with investors that the higher capex comes as the company builds out its global manufacturing sites to address long-term demand. Micron also expects higher equipment expenditures in fiscal 2027, he said.

Memory Supply Tightness

Mehrotra said Micron’s record results were attributable to an increase in memory demand, driven by AI and structural supply constraints.

He added that while additional server demand was robust, driven by a combination of demand from Agentic AI and broad-based servers, both segments were constrained by lack of adequate Dram and Nand supply.  

“Memory makes AI smarter and more capable, enabling longer context windows, deeper reasoning chains, and multi-agent orchestration, as AI evolves. We expect compute architectures to become more memory intensive. This is why we strongly believe that Micron is one of the biggest beneficiaries, and enablers of AI,” Mehrotra said.

Q3 Outlook

For the third-quarter (Q3) of 2026, Micron forecast revenue of about $33.5 billion, plus or minus $750 million. Analysts projected revenue of $22.48 billion, according to Fiscal.ai. The company expects to record earnings per share of $19.15, plus or minus $0.40.

Street Action

Following the earnings results, Summit Insights downgraded Micron to ‘Hold’ from ‘Buy,’ saying that the firm expects MU stock’s outperformance in the second half of FY26 to moderate, as per TheFly.

Summit Insights added that while it sees favorable memory demand-supply dynamics and pricing through the first half of 2026, the firm also believes that price increases will likely decelerate meaningfully in FY26.

Prior to the results, Bernstein analyst Mark Li raised the firm's price target on Micron to $510 from $330 and kept an ‘Outperform’ rating on the shares, saying global memory price increases are more than expected in Q2.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around MU shares dropped from ‘extremely bullish’ to ‘bullish’ territory over the past 24 hours amid ‘high’ message volumes.

One bullish user said that the strong earnings results were already baked into the share price.

However, another bearish user flagged the high capex, warning that demand would crater amid slowing data center growth.

Shares of the company have rallied more than 353% in the past year.

Also Read: Why Did GXAI Stock Surge More Than 13% Today?

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