Micron CEO Warns AI Memory Demand Far Exceeds Supply

Micron Technology, Inc. (NASDAQ:MU) is meeting just a fraction of customer demand due to ongoing supply constraints, CEO Sanjay Mehrotra said Thursday, highlighting persistent tightness in the AI memory market.

CEO Flags Tight Supply And AI-Driven Growth

Mehrotra told CNBC’s Squawk on the Street on Thursday, “We are only able to supply, for our key customers in the midterm, about 50% to two-thirds of their requirements.”

He told analysts that supply-demand conditions for DRAM and NAND are expected to remain tight beyond 2026 and described memory as a “strategic asset” in the AI era, as per the Wall Street Journal report on Wednesday.

Strong Results Beat Expectations

Micron posted second-quarter revenue of $23.86 billion, well above analyst estimates of $19.94 billion, according to Benzinga Pro.

The semiconductor company reported adjusted earnings of $12.20 per share for the quarter, easily exceeding analyst estimates of $9.21 per share.

“Micron set new records across revenue, gross margin, EPS and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply and our strong execution, and we expect significant records again in fiscal Q3,” said Mehrotra.

“In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand.”

The company expects fiscal third-quarter revenue of around $33.5 billion and earnings of about $19.15 per share, both well above analyst forecasts.

CFO Highlights Spending And Capacity Expansion

CFO Mark Murphy said Micron is ramping production, including high-volume HBM4 output, and increasing investment to ease supply constraints. The company now expects capital expenditures to exceed $25 billion this year, with further increases planned for 2027, largely tied to expanding manufacturing capacity.

Technical Analysis

MU is trading 3.4% above its 20-day simple moving average (SMA) and 33.4% above its 100-day SMA, keeping the intermediate uptrend intact even as the stock cools off. Shares are up 319.05% over the past 12 months and are closer to their 52-week highs than to their lows, trading in a $61.54 to $471.34 range.

The RSI is at 58.24, which is in neutral territory and suggests the pullback is more of a reset than a breakdown signal on its own. Meanwhile, MACD is at 14.4051 versus a 10.0799 signal line, keeping a bullish MACD structure in place despite Friday’s weakness.

The combination of an RSI above 50 and a bullish MACD suggests mixed momentum, with trend strength still present but short-term upside less clear.

• Key Resistance: $437.00
• Key Support: $364.00

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the June 24, 2026 (estimated) earnings report.

• EPS Estimate: $9.56 (Up from $1.91 YoY)
• Revenue Estimate: $20.82 Billion (Up from $9.30 Billion YoY)
• Valuation: P/E of 42.2x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $519.58. Recent analyst moves include:

• JP Morgan: Overweight (Raises Target to $550.00) (Mar. 19)
• Mizuho: Outperform (Raises Target to $530.00) (Mar. 19)
• B of A Securities: Buy (Raises Target to $500.00) (Mar. 19)

Top ETF Exposure

• iShares Semiconductor ETF (NASDAQ:SOXX): 8.75% Weight
• iShares MSCI USA Value Factor ETF (BATS:VLUE): 9.49% Weight
• iShares Future AI & Tech ETF (NYSE:ARTY): 6.96% Weight

Significance: Because MU carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.

Price Action

MU Price Action: Micron Technology shares were down 3.59% at $428.31 at the time of publication on Friday, according to Benzinga Pro data.

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