Micron’s Capital Spending Growth Overshadows Booming Sales (1)

Micron Technology Inc.warned that it will need to spend heavily on production to meet burgeoning demand, overshadowing a generally upbeat forecast from the largest US maker of computer memory chips.

Capital spending will exceed $25 billion this fiscal year, which runs through August, the company said as part of its quarterly report on Wednesday. Analysts had estimated $22.4 billion. Micron added that 2027 expenditures will increase more than $10 billion from the prior year.

Micron CEO Sanjay Mehrotra is ramping up spending to meet soaring AI computing demand.

Photographer: Kyle Green/Bloomberg

“We project our fiscal 2027 capex to step up meaningfully,” Chief Executive Officer Sanjay Mehrotra said during a conference call.

The heavy spending reflects ...