Micron Just Gave Incredible News to Investors of This AI Infrastructure Stock That Has Tripled in a Year
The Motley Fool • • business
Key Points:
- Micron Technology reported a nearly threefold increase in revenue to $23.9 billion for Q2 fiscal 2026, driven by strong AI-related demand for memory products and supply constraints boosting memory prices.
- The company plans to increase its fiscal 2026 capital expenditure to over $25 billion, up from an earlier estimate of $20 billion and $13.8 billion last year, to meet only half to two-thirds of current memory demand.
- CEO Sanjay Mehrotra indicated that fiscal 2027 capex will rise further to support investments in high-bandwidth memory (HBM) and DRAM, including expansions in cleanroom facilities and equipment procurement.
- Lam Research, a key semiconductor equipment supplier, is benefiting from Micron’s increased spending, with 34% of Lam’s revenue coming from memory chipmaking equipment sales, contributing to Lam’s stock price growth.
- Following Micron’s strong results and spending plans, Lam Research’s stock has surged, tripling over the past year, with expectations for continued upside fueled by ongoing investments in memory and semiconductor manufacturing.
