Benzinga10:21 PM ET, 03/18/2026
Micron Stock Dips 4.4% After Hours After Blockbuster Quarter: Analyst Says It Is Supply, Not Demand That Matters
[source image]
In after-hours trading on Wednesday, Micron Technology (NASDAQ:MU) slipped 4.43%, according to Benzinga Pro. The company delivered quarterly earnings earlier in the day.
Micron Reports Q2 Earnings On Wednesday
The company reported second-quarter revenue of $23.86 billion, beating estimates. It posted adjusted earnings of $12.20 per share, which also topped Wall Street expectations.
For the third quarter, Micron guided $33.5 billion, with a leg room for plus or minus $750 million.
Micron Increases Capex And Addresses Supply Concerns
During the earnings call, Micron execs said that the company is working toward addressing the gap between supply and demand.
The tech giant highlighted new facilities in the U.S., Taiwan, Japan and Singapore. However, these facilities are not expected to bring meaningful output until next year or later.
The company also announced that it expects fiscal 2026 capital expenditure to be above $25 billion. "We project our fiscal 2027 CapEx to step up meaningfully to support HBM [High Bandwidth Memory] and DRAM [Dynamic Random-Access Memory]-related investments."
Wedbush Analyst Says Demand Doesn't Matter, Supply Does
Speaking with Bloomberg TV, Wedbush analyst Matt Bryson said that memory is a supply-driven business. He said it doesn't matter how much demand there is, but if the vendors can meet the demand with enough supply.
"Because you have these long lead times for fabs, we don’t really begin to see new supply coming on until next year. And it may even be [20]28 before Samsung, Micron can catch up with all the demand from AI," he said.
Micron Technology warned that it will need to spend heavily on production to meet burgeoning demand, overshadowing a generally upbeat forecast from the largest US maker of computer memory chips *****JZP0jwyHVl pic.twitter.com/FuIAxczY8i
— Bloomberg TV (@BloombergTV) March 18, 2026
Daniel Newman And Jim Cramer Remain Bullish
At the same time, Futurum Group CEO Daniel Newman called Micron's results a turning point. "The numbers don’t lie. This isn’t a cycle. It’s a regime change," he said on X.
$MU just obliterated it. $23.86B revenue vs ~$19B expected. $12.20 EPS vs $8.69 consensus. 75% gross margins. And they guided Q3 to $33.5B with 81% margins.
I said AI breaks the memory cycle. I pounded the table under $100. They said Micron was "locked out" of HBM4. The numbers…
— Daniel Newman (@danielnewmanUV) March 18, 2026
CNBC host Jim Cramer downplayed stock slipping in after-hours. He said, "It is not unusual for a stock like Micron to have a blow off top only to come back a few weeks later.. it is not worth freaking out about…"
It is not unusual for a stock like Micron to have a blow off top only to come back a few weeks later.. it is not worth freaking out about…
— Jim Cramer (@jimcramer) March 18, 2026
Benzinga Edge Stock Rankings indicate that Micron Technology stock remains strong across short, medium and long-term timeframes, though its Value score sits in the 21st percentile.
Photo Courtesy: Sundry Photography on Shutterstock.com
© 2020 Benzinga.com - Benzinga does not provide investment advice. All rights reserved.
