Micron Plans $40 Billion Investment Amid AI Memory Shortages

Micron Technology, Inc. is increasing capital expenditures to exceed the mid-$40 billion range for fiscal year 2027 to address severe shortages of High Bandwidth Memory (HBM). These shortages are driven by the rapid expansion of AI infrastructure, though the company does not expect significant new supply to enter the market until approximately 2028.

This supply gap is a broader industry trend. SK hynix projects that memory deficits will persist through 2030, noting that its HBM4E capacity in Indiana will not be available until 2029.

Market demand remains high, as evidenced by Nvidia Inc.'s projected 70% revenue growth. This growth suggests the AI sector can absorb the increasingly expensive memory components required to power next-generation hardware.