Micron Technology has boosted its 2024 capital expenditure forecast to approximately $8 billion, with a focus on investments in high bandwidth memory (HBM) semiconductors for AI applications. Based in Boise, Idaho, Micron is a major supplier of HBM chips, which are crucial for AI servers. The company’s cutting-edge HBM3E chips will be used to power Nvidia’s H200 chips.
As of March, Micron had already sold out its entire 2024 inventory of HBM chips, with a significant portion of 2025’s supply already pre-allocated. The company is ramping up production from eight-layer HBM chips to 12-layer variants to meet the increasing demand. CFO Matt Murphy announced the increase in the capex forecast from $7.5 billion to $8 billion, highlighting the potential for the HBM segment to become a multibillion-dollar industry by fiscal 2025. Despite this positive news, Micron shares fell by 3% amid general market weakness.
For investors, Micron’s stock performance is reflective of broader market trends, with the company’s shares up 51% for the year despite the recent dip. Monitoring semiconductor stocks like Micron could provide insights into future growth areas, especially with the growing demand for AI technologies.
On a larger scale, the surge in AI applications is driving the need for advanced HBM semiconductors, a trend that Micron is strategically positioning itself to benefit from. The company’s expansion in HBM chip production aligns with the increasing global demand for tech solutions. Geopolitical and economic factors are likely to play a significant role in shaping the future of this sector as countries invest more in AI and related technologies.
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