Overview
- Micron announced Thursday it will raise planned capital spending by $50 billion, bringing estimated investment through 2035 to about $250 billion to expand U.S. fabs and wafer supply.
- The company reported extraordinary results that pushed revenue and margins to record levels and disclosed 16 multi‑year customer agreements that imply roughly $100 billion of minimum performance obligations.
- Micron says DRAM and NAND supply will remain tight beyond 2027 and that HBM—the premium memory used next to AI accelerators—is largely sold out through that period.
- Investors have pushed the stock to a trillion‑dollar valuation and analyst price targets have become extremely bullish, but the shares have turned volatile as traders weigh profit‑taking and valuation risk.
- Rival moves including SK Hynix’s U.S. listing and planned capacity additions could relieve tightness by 2027–2028, so the market is watching execution of Micron’s U.S. buildout and whether AI customers keep spending.