Micron Shares Slip as CEO Signals Higher Capital Spending Ahead | UBS Pounds the Table on Micron …

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Micron Shares Slip as CEO Signals Higher Capital Spending Ahead

Micron Technology (MU, Financials) shares edged lower after executives indicated the company may need to raise capital spending to support demand and long-term supply commitments. Speaking at RBC Capital Markets' Global Technology conference, CEO Sanjay Mehrotra said the current $18 billion spending run rate would come under pressure as market tightness extends beyond 2026.

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Mehrotra said multi-year customer agreements give Micron better visibility but also require the company to ensure adequate capacity, making higher investment levels difficult to avoid. He emphasized that Micron remains disciplined, even as spending needs rise.

UBS Pounds the Table on Micron Stock

Micron’s (NASDAQ:MU) shares have been on an absolute tear this year, climbing by 169%, although the stock has retreated by 10% from the all-time high reached earlier this month.

The pullback reflects recent market jitters around AI and tech, but on Wednesday, the shares were down for a more specific reason. The stock slipped after Micron executives at the Global Technology Conference hinted that higher capital spending could be coming. In a Wednesday fireside chat in New York, CFO Mark Murphy said Micron’s current $18 billion annual spending pace is likely to come under “pressure,” pointing to market tightness expected to last past 2026 and the company’s long-term customer commitments. At the same time, CTO Scott DeBoer said he’s confident in the company’s technology, noting it’s in the “strongest position in history,” with solid yields on its gamma node and additional product ramps set for the next two years.

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