Micron's Rally Faces Headwinds as CapEx and Overcapacity Risks Mount
TL;DR Summary
Micron Technology posted strong earnings and cash flow on AI-driven demand, but faces headwinds from a large CapEx ramp toward $25B in FY2026 (potentially higher next year), which could drive overcapacity and margin normalization. With momentum fading since January and the author maintaining a Sell rating, the valuation and sustainability of the rally remain in question.
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