Micron lifts 2024 capex forecast on rising investment in AI-related chips

Micron Technology on Tuesday pretty raised its capital expenditure forecast for 2024, as the U.S. chipmaker invests carefully to gain high bandwidth memory (HBM) semiconductors to meet surging inquire of of from the AI alternate.

WHY IT’S IMPORTANT

Boise, Idaho-primarily based fully Micron is considered one of many three tidy providers of HBM chips, an wanted segment of the hardware aged in artificial intelligence servers. Its evolved HBM3E will seemingly be aged in AI chip leader Nvidia’s H200 chips.

CONTEXT

The corporate acknowledged in March its HBM chips, which test with semiconductors aged within the improvement of AI applications, had been equipped out for 2024. A majority of its 2025 present has also been allocated, it has acknowledged.

Micron for the time being provides eight-layer HBM, and has started sampling 12-layer HBM.

BY THE NUMBERS

Micron raised its 2024 capex forecast to about $8 billion, up from its earlier forecast of $7.5 billion, CFO Matt Murphy acknowledged.

KEY QUOTE

“In fiscal 2025, we demand HBM to be a multibillion-greenback alternate for us,” Chief Working Officer Manish Bhatia acknowledged on the J.P. Morgan Technology, Media and Communications Convention.

MARKET REACTION

Shares of the company had been down about 3 per cent in a broadly dilapidated market. The stock hit a file high in March, and is up about 51 per cent this Twelve months thru Monday end.