Micron Slips 4%: NVIDIA’s HBM Supplier Just Posted Record Results, So Why Is It Falling?

Core Insights - Micron Technology's stock fell 4% despite posting record fiscal Q2 2026 results, with shares dropping from $461.73 to $445 [2][8] - The market reaction is attributed to a "sell the news" reflex and concerns over supply-chain risks linked to geopolitical tensions in the Middle East [3][8] Financial Performance - Micron reported fiscal Q2 2026 revenue of $13.64 billion, a 56.6% increase year over year, surpassing the consensus estimate of $12.88 billion [5][8] - Non-GAAP EPS was $4.78, exceeding the estimate of $3.94 by over 21% [5][8] - GAAP gross margins expanded to 56.0%, up from 38.4% a year ago [5] Business Unit Highlights - The Cloud Memory Business Unit was a standout, with revenue nearly doubling to $5.28 billion and gross margins reaching 66% [6][8] - Micron's operating income surged 182% year over year to $6.14 billion, and free cash flow was reported at $3.91 billion [6] Future Guidance - CEO Sanjay Mehrotra provided aggressive guidance for Q2 FY2026, projecting revenue of $18.7 billion, non-GAAP EPS of $8.42, and GAAP gross margins expected at 67% [7][8]