In perhaps a sign of the times, Micron blew past Wall Street’s expectations when it reported second-quarter earnings after the bell on Wednesday. But the market wasn’t impressed, and the stock dropped precipitously Thursday morning.

Micron posted about $24 billion in revenue, above expectations of $20 billion, and $12.20 of earnings-per-share above expectations of $9.31. The stock is down about 5% as of mid-day Thursday.

It's a story of insatiable data center demand. It's also a story of investors getting jittery about the picks-and-shovels stocks powering the AI trade, of which Micron is a key part.

Though the company nearly tripled its revenue over the same quarter last year, and demand for its chips is through the roof, it’s that very demand that made investors cautious. CEO Sanjay Mehrotra told CNBC on Thursday that they’re unable to supply all of their customers, as there’s a crunch of memory chips.

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“We are only able to supply, for our key customers in the mid-term, about 50% to two-thirds of their requirements,” Mehrotra said.

Still, Micron has been on a tear as of late. The stock is up nearly 350% over the last year and 45% since January 1. The company has benefited in a big way thanks to soaring demand for Nvidia’s chips. But investors have already priced in the good news, and even a blowout quarter can’t keep the momentum going.

For now, investors are looking to the next quarter. Micron projects $33.5 billion in revenue for the next quarter, and EPS of $18.90. It’s a huge jump. And despite the market’s reaction, major banks still updated their price targets: Wells Fargo to $550 per share from $470, and Barclays to $670 from $450.

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