Why Micron (MU) Stock Is Down Today

Micron shares fell 5.7% after TSMC reported record profit but raised its capital expenditure guidance to $60–$64 billion, up from a prior ceiling of $56 billion, while also warning that Q3 operating margins would come in roughly 70 basis points below consensus. The capex reset shifted investor focus from top-line AI demand strength to near-term free cash flow compression, triggering a broader semiconductor selloff that began with ASML the previous day.

Why it matters: Micron also faced pressure from reports that Chinese rival CXMT is preparing an $8.55 billion IPO and signs of weakening memory chip pricing, with AI cloud provider CoreWeave reportedly exploring financial tools to hedge against further cost declines.