Key facts
- Micron announced a $50 billion increase in capital expenditure.
- Total projected capital expenditure through 2035 is now $250 billion.
- The investment aims to support the production of 40% of DRAM in the U.S.
- Micron's stock surged up to 9% on the news.
- Competitors like Sandisk and Western Digital also saw stock price increases.
Micron announced a significant increase in its capital expenditure plans, aiming to invest an additional $50 billion, bringing its total projected spending through 2035 to $250 billion. This move is intended to support the long-term goal of producing 40% of its dynamic random-access memory (DRAM) in the United States and create jobs. The announcement led to a surge in Micron's stock, which climbed as much as 9%. The positive sentiment extended to other memory chip manufacturers, with Sandisk and Western Digital each rising 7%. The Roundhill Memory ETF, which includes major players like Samsung and SK Hynix, also saw a 7% increase. Investors have recently shown mixed reactions to the rapid pace of AI capital expenditure by hyperscalers such as Meta, Amazon, and Microsoft, causing the Magnificent Seven group to lag the broader Nasdaq 100. However, Micron's announcement suggests that a shortage in memory capacity, driven by AI buildouts, is creating opportunities for memory makers. Commerce Secretary Howard Lutnick commented on the investment, stating that President Trump's focus on building businesses in America is yielding results and that there has never been a better time to invest in the United States.