On March 19, according to Bloomberg,Memory chip giant Micron Technology warned on Wednesday that it would need to invest heavily in production capacity to meet surging market demand.This statement cast a shadow over the company's overall optimistic performance forecast.
Micron
Micron said in its quarterly financial report released on Wednesday that capital expenditures in fiscal 2026 (ending August this year) will exceed US$25 billion, exceeding analysts' expectations of US$22.4 billion. Micron also added that spending in fiscal 2027 will increase by more than $10 billion year-on-year.
"We expect capital expenditures to increase significantly in fiscal 2027."Micron CEO Sanjay Mehrotra said on a conference call.
The huge spending reflects the price Micron is paying to meet booming demand for its memory chips, especially high-bandwidth memory used in AI computing. Although Micron's sales are expected to continue to soar, its latest financial report was met with cold reception by investors, and its stock price fell 4.9% to $439 per share.