Micron shares fall 3.2% as investors react to TSMC earnings and market dynamics

Micron Technology Inc. (NASDAQ:MU) shares declined 3.2% to $845.85 by mid-morning trading on Thursday, extending a second consecutive day of losses. The move followed Taiwan Semiconductor Manufacturing Co.'s (TSMC) earnings release, which beat analyst forecasts with a 77% year-over-year profit increase but projected capital expenditures of about $60 billion for the year, higher than earlier estimates of $54 billion.

Analysts noted that TSMC’s higher spending could pressure its free cash flow, prompting a modest 1.5% sell-off in the Taiwanese chipmaker’s stock. However, the increased production of AI-focused CPUs and GPUs at TSMC is expected to boost demand for Micron’s high-bandwidth memory (HBM) products, which are required for those chips.

Separately, Micron disclosed that it has entered strategic customer agreements with seven Tier 1 automotive suppliers—Qualcomm, Visteon, HARMAN, JOYNEXT, DENSO, Astemo and Hyundai Mobis—to supply memory chips for automotive applications. The company said the contracts provide certainty on future orders and pricing, and are intended to sustain high profit margins in the automotive segment.

Investors appear to be weighing the mixed signals from the broader semiconductor market and Micron’s own operational updates as the stock navigates short-term volatility.