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Micron’s Capital Spending Growth Overshadows Booming Sales
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March 19, 2026
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4:30Now PlayingBloomberg's Jake Silverman said that Micron Technology Inc. warned investors that it will need to spend heavily on production to meet burgeoning demand, overshadowing a generally upbeat forecast from the largest US maker of computer memory chips. Capital spending will exceed $25 billion this fiscal year, which runs through August, the company said as part of its quarterly report on Wednesday. Analysts had estimated $22.4 billion. Micron added that 2027 expenditures will increase more than $10 billion from the prior year.
“We project our fiscal 2027 capex to step up meaningfully,” Chief Executive Officer Sanjay Mehrotra said during a conference call.
The heavy spending reflects the cost of keeping up with an insatiable appetite for Micron’s memory chips, especially the high-bandwidth components used in artificial intelligence computing. Though Micron’s sales are expected to keep soaring, the latest report drew a chilly reception from investors. The shares fell as much as 8.8% to $421.11 in New York trading Thursday before paring the losses.
Fiscal third-quarter revenue will be approximately $33.5 billion, the Boise, Idaho-based company said. Analysts estimated $23.7 billion on average for the period. Excluding some items, profit will be about $19.15 a share, compared with a projection of $11.29.
Memory prices have been soaring because of shortages fueled by AI computing demand. High-bandwidth memory is critical to the data transfer needed for training and running artificial intelligence models. That’s led memory makers to allocate more production to these higher-margin orders, hurting supply of other types of memory and causing price spikes.
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