Micron shares tumble ~14% after Q2 earnings
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- Micron's share price fell roughly 14% over four days after the Q2 earnings release, including a 2.2% decline on Tuesday.
- Micron reported Q2 revenue of $23.86 billion, almost three times the $8.05 billion recorded a year earlier.
- Micron projected next‑quarter gross margins of about 80%, a figure highlighted as higher than Nvidia’s 75% margin.
- Sanjay Mehrotra said memory supply is “very tight” and key customers are receiving only 50% to two‑thirds of their requirements.
- Analysts at Bank of America, Morgan Stanley and JPMorgan raised their price targets on Micron after the earnings beat.
- Citi analyst Atif Malik noted profit‑taking pressure, citing higher FY27 capex and peak gross‑margin concerns as possible drivers.
Why it matters: Investors who bought on the rally see a sharp pull‑back, while AI chip makers face continued memory shortages that could limit production. The raised analyst price targets suggest confidence in Micron’s earnings, but the stock dip reflects short‑term profit‑taking pressure.
