Micron Technology Inc (NASDAQ:MU) shares are down during pre-market trading on Thursday after the company delivered its second-quarter results on Wednesday.

The company reported revenue of $23.86 billion, significantly topping expectations. Adjusted earnings hit $12.20 per share, far surpassing the $8.69 consensus. For the third quarter, Micron guided revenue to $33.5 billion.

Heavy Spending to Support AI Demand

Management indicated that it must spend heavily to meet burgeoning demand. The company expects fiscal 2026 capital expenditure to exceed $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,” executives stated. New facilities in the U.S. and Asia won’t provide meaningful output until next year or later.

Analyst Flags Supply as Key Metric

Wedbush analyst Matt Bryson told Bloomberg TV that memory remains a supply-driven business. Bryson noted that new supply likely won’t arrive until next year due to long fab lead times.

Regime Change or Blow-Off Top?

Futurum Group CEO Daniel Newman called the results a “regime change” for the sector. Conversely, CNBC’s Jim Cramer suggested the dip might be a “blow off top” and urged calm.

Technical Analysis

Micron is trading 5% above its 20-day simple moving average (SMA), and 36.1% above its 100-day SMA, keeping the bigger uptrend intact even with Thursday's early weakness.

Shares are up 352.41% over the past 12 months and are positioned closer to their 52-week highs than lows.

The RSI is at 64.34, which is neutral territory. Meanwhile, MACD is at 13.9837 versus the signal line at 8.9983.

MU Stock Price Activity: Micron Technology shares were down 6.31% at $432.60 during premarket trading on Thursday, according to Benzinga Pro data.

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