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

Micron Technology on Tuesday (May 21) slightly raised its capital expenditure forecast for 2024, as the US chipmaker invests heavily to make high bandwidth memory (HBM) semiconductors to meet surging demand from the AI industry.

Boise, Idaho-based Micron is one of the three large providers of HBM chips, an essential part of the hardware used in artificial intelligence servers. Its advanced HBM3E will be used in AI chip leader Nvidia’s H200 chips.

The company said in March its HBM chips, which refer to semiconductors used in the development of AI applications, were sold out for 2024. A majority of its 2025 supply has also been allocated, it has said.

Micron currently offers eight-layer HBM, and has started sampling 12-layer HBM.

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

“In fiscal 2025, we expect HBM to be a multibillion-US dollar business for us,” chief operating officer Manish Bhatia said at the JPMorgan Technology, Media and Communications Conference.

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Shares of the company were down about 3 per cent in a broadly weak market. The stock hit a record high in March, and is up about 51 per cent this year through Monday close. REUTERS