AI Spending Near $1 Trillion Boosts Nvidia and Micron

Nvidia and Micron Technology reported record revenues driven by global artificial intelligence capital expenditures that are now approaching $1 trillion annually. Nvidia earned $96.2 billion in revenue for its fiscal 2027 second quarter, with its data center business accounting for $89 billion of that total.

Micron Technology reported record fiscal 2026 fourth-quarter revenue of $54.2 billion and full-year revenue of $133.2 billion. This growth was primarily fueled by high demand for high bandwidth memory (HBM) used in AI infrastructure.

Both companies face potential risks if major technology firms reduce their AI spending. Nvidia faces competition from AMD and the development of custom AI chips, alongside ongoing export restrictions. Micron remains vulnerable to the cyclical nature of the memory market, where aggressive production increases could result in a supply glut and reduced margins.