Micron's AI Boom: Strong Revenue Forecast, But Higher Spending Knocks Shares

• Micron forecasts strong Q3 revenue, exceeding Wall Street expectations, driven by booming AI memory chip demand.
• Shares fell 5% after Micron announced a $5 billion increase in its 2026 capital spending plan to meet rising demand.
• The company plans over $25 billion in spending this fiscal year, with further increases in 2027 due to facility expansion.
• Acquisition of a fabrication plant from Powerchip Semiconductor Manufacturing Corp for $1.8 billion contributes to higher 2026 spending.
• Micron, a key supplier of high-bandwidth memory chips for AI, reported record profit margins amid a supply crunch.