Micron Technology (NASDAQ:MU) has revised its capital expenditure forecast for 2024 upwards, reflecting its intensified investment in high bandwidth memory (HBM) semiconductors to cater to the escalating needs of the AI sector.
The importance of this development lies in Micron’s pivotal role as one of the leading providers of HBM chips, crucial components in the hardware infrastructure utilized in AI servers. Notably, Micron’s cutting-edge HBM3E technology is set to feature prominently in Nvidia’s H200 chips, positioning Micron as a key player in the AI chip market.
Against the backdrop of surging demand, Micron disclosed in March that its HBM chip inventory for 2024 had already been exhausted, with a significant portion of its 2025 supply already committed.
Presently, Micron offers eight-layer HBM chips and has initiated the sampling process for its twelve-layer counterparts.
In numerical terms, Micron’s 2024 capital expenditure projection has been adjusted to approximately $8 billion, reflecting an increase from the previous estimate of $7.5 billion, as stated by CFO Matt Murphy.
Chief Operating Officer Manish Bhatia emphasized the company’s bullish outlook, foreseeing HBM as a multibillion-dollar venture for Micron in fiscal 2025. Bhatia made these remarks during the J.P. Morgan Technology, Media, and Communications Conference.
Despite this positive outlook, Micron’s stock experienced a modest 3% decline amid broader market weakness. However, the company had previously reached a record high in stock value in March, marking a remarkable 51% increase in share value since the beginning of the year, as of Monday’s closing.
Featured Image: Megapixl
Author Faith Yakubu 
