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Investing.com -- Micron Technology, Inc. (NASDAQ:MU) stock fell 1% following comments from executives at RBC Capital Markets’ 2025 Global Technology conference suggesting increased capital expenditure may be on the horizon.
During Wednesday’s fireside chat in New York, CFO Mark Murphy indicated that Micron’s current capital spending run rate of $18 billion would face "pressure" due to market tightness expected to extend beyond 2026 and the company’s multi-year customer agreements.
The semiconductor manufacturer’s Chief Technical Officer Scott DeBoer expressed optimism about Micron’s technological position, stating the company is in the "strongest position in history" with mature yields on its gamma node and ongoing product ramps planned over the next two years.
Despite the positive technological outlook, investors appeared concerned about increased capital requirements. Murphy emphasized that while multi-year customer agreements provide better business visibility, the company remains "extremely disciplined" on investments, though spending increases appear inevitable.
On the product front, DeBoer highlighted Micron’s leadership in 3D DRAM technology and noted substantial growth in data center solid-state drives over the past year. He also mentioned that Micron is leading the industry on PCI Gen 6 for the first time.
Regarding near-term performance, Murphy projected that the second quarter would produce better margins than the first quarter. He also noted that HBM4 memory would begin shipping in the second quarter with production ramping up in the second half of the year, though he declined to specify when it would overtake HBM-3e in volume.
On the financial front, Murphy reported a "significant increase in cash flow" with improving business conditions. He noted that debt "has calmed down" and that the company expects to reach a net cash position in the near term.