Micron Falls 3.2% for Second Day as TSMC Lifts Capex to Over $60 Billion
Updated
Updated · The Motley Fool · Jul 16
Micron Falls 3.2% for Second Day as TSMC Lifts Capex to Over $60 Billion
3 articles · Updated · The Motley Fool · Jul 16
Summary
Micron shares slid 3.2% by 10:15 a.m. ET, extending a second straight daily drop after TSMC’s latest outlook rattled chip investors.
TSMC reported Q2 profit growth of 77% year over year but said 2026 capital spending would top $60 billion, up from prior expectations of about $54 billion, fueling worries about free cash flow.
That read-through hit Micron even though higher TSMC output of AI CPUs and GPUs could lift demand for Micron’s high-bandwidth memory chips used alongside them.
Micron also disclosed strategic supply agreements with seven Tier 1 automotive suppliers, including Qualcomm, DENSO and Hyundai Mobis, giving it more visibility on future orders and pricing.
The sell-off highlights how semiconductor stocks are being driven by spending fears even as Micron’s own customer commitments point to steadier demand and margins.