Micron (NASDAQ:MU) ein shares dem slide after executives hint say dem dey consider increase capital spending. Dis come as dem dey try meet demand den long-term supply commitments. Despite dis, some analysts dey bullish on di stock's future.
Micron's Capital Spending: Wetin Dey Happen?
Micron CEO Sanjay Mehrotra talk say di current $18 billion spending rate go come under pressure as market tightness extend beyond 2026. Multi-year customer agreements dey give Micron better visibility, but e still require dem to ensure adequate capacity. Dis dey make higher investment levels difficult to avoid. But Mehrotra emphasize say Micron dey disciplined, even as spending needs dey rise.
Technology Advantage
Chief Technology Officer Scott DeBoer talk say Micron dey in its strongest position in history. E mention mature yields on dia gamma node and additional product ramps wey dem plan through 2027. E point to leadership in 3D DRAM and strong growth in data center solid-state drives. E add say Micron dey ahead of peers on PCIe Gen 6 adoption.
UBS Analyst: Bullish on Micron
Despite di concern about capital expenditure, UBS analyst Timothy Arcuri maintain a positive outlook. Arcuri, wey dem rank as one of di top stock experts, believe say di information wey Micron provide consistent with recent industry checks. Micron expect supply tightness to last through di end of 2026, longer than dem project three months ago. Dia HBM supply don fully book through di end of 2026. Arcuri dey see profitability in core DRAM strengthening even further.
- Micron shares slip as CEO signals higher capital spending.
- UBS analyst remain bullish despite concerns.
- Micron expect supply tightness to last through 2026.
Micron expect margins in di second quarter to improve from di first. HBM4 memory shipments go begin in di quarter before scaling in di second half of di year. Cash flow don improve and Micron expect to reach a net cash position soon.