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Micron CFO Mark Murphy forecasts fiscal 2026 CapEx over $25 billion with significant increases for HBM and DRAM in 2027
Wednesday, March 18, 2026 at 08:30 PM
Micron expects its fiscal 2026 capital expenditures to exceed $25 billion, with a significant increase planned for fiscal 2027 to support HBM and DRAM production. The company anticipates construction-related CapEx will rise by more than $10 billion year-over-year in 2027 as it expands global manufacturing facilities, alongside increased equipment spending to meet long-term demand.
Context
Micron CFO Mark Murphy recently forecasted that fiscal 2026 capital expenditures will exceed $25 billion, a significant increase over prior estimates of $20 billion. The company projects a further "meaningful step up" in fiscal 2027 spending to address an AI-driven supply deficit in the memory sector. Specifically, Micron expects construction-related capex to surge by over $10 billion year-over-year in 2027 as it builds out global manufacturing sites, including its massive $50 billion Boise campus expansion. While the exact venue of these remarks was not specified in the recent fiscal Q2 2025 earnings call, they align with the firm's aggressive strategy to break the AI memory bottleneck.
This capital intensity is driven by surging demand for High-Bandwidth Memory (HBM) and advanced DRAM nodes. Micron recently reported that its HBM revenue crossed the $1 billion milestone in fiscal Q2 2025, with the total HBM market expected to reach $100 billion by 2028. By securing long-term supply contracts for 2026 with predetermined pricing, the company is gaining high revenue visibility. These investments are critical for Micron to maintain its competitive position against rivals like SK Hynix and Samsung as the industry shifts from commodity memory to high-margin, AI-essential components.
Sources (7)
Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2025 | Micron TechnologyResearch Update: Micron Technology Inc. Rating Ra | S&P Global RatingsMicron to invest $20b in US chip plants on AI demandMicron hikes FY26 capex to US$20b to accelerate HBM and US fab outputMicron Stock: Is The AI Memory Boom Just Beginning?Micron Is Spending $200 Billion to Break the AI Memory Bottleneck - WSJMicron driving growth in AI memory - Equiti
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