AI Infrastructure Spending Set to Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Market Spending Forecast: According to Futurum's research, the spending on AI infrastructure by the five largest hyperscalers in the U.S. is expected to reach between $660 billion and $690 billion in 2026, a significant increase from last year's $380 billion, indicating a strong investment commitment to AI technology.
- Micron's Technological Edge: Micron's high-bandwidth memory (HBM) is critical for AI data centers, with predictions that AI servers will require six times the amount of DRAM compared to standard servers, driving up memory chip prices and leading analysts to be bullish on Micron's earnings growth prospects.
- Jabil's Growth Potential: Jabil plans to invest $500 million to expand its AI data center infrastructure manufacturing capacity, with projected AI revenue growth of 35% to $12.1 billion in fiscal 2026, showcasing its strong growth momentum in the AI infrastructure space.
- Investment Opportunities: Both Micron and Jabil stocks are currently trading at 24 times and 19 times forward earnings, respectively, which are below the Nasdaq-100's multiples, providing investors with attractive opportunities amidst the rapid growth of AI infrastructure.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 429.000
Low
235.00
Averages
336.12
High
500.00
Current: 429.000
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). CNBU segment includes memory products and solutions sold into the data center, PC, graphics, and networking markets. MBU segment includes memory and storage products sold into the smartphone and other mobile-device markets. EBU segment includes memory and storage products and solutions sold into the intelligent edge through the automotive, industrial, and consumer embedded markets. SBU segment includes SSDs and component-level storage solutions sold into the data center, PC, and consumer markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Technology Stock Soars 300% Amid AI Demand
- Surging Demand: Micron Technology's high-bandwidth memory products are experiencing unprecedented demand, with its entire 2026 supply already sold out, indicating strong competitive positioning in the rapidly growing AI market.
- Impressive Financial Performance: In the first quarter of fiscal 2026, revenue surged 57% year-over-year, with expectations for the second quarter to reach $18.7 billion, reflecting a 130% increase compared to the entire fiscal 2023, showcasing significant profitability improvements.
- Expansive Market Outlook: The high-bandwidth memory market is projected to grow from $35 billion in 2025 to $100 billion by 2028, and Micron's leading position in this sector will enable it to capitalize on future market expansion.
- Investor Confidence Rebounds: Despite risks associated with potential supply increases, the sustained strong demand for AI infrastructure suggests that Micron's stock may continue to rise, leading investors to maintain an optimistic outlook on its future performance.
See More
Surge in AI Infrastructure Demand Boosts Micron Technology
- Surge in AI Infrastructure Spending: According to Futurum, the top five hyperscalers in the U.S. are projected to spend between $660 billion and $690 billion on AI infrastructure in 2026, a significant increase from last year's $380 billion, indicating robust demand and growth potential in the AI market.
- Micron's DRAM Demand Soars: Micron Technology's DRAM chips are critical for AI data centers, with AI servers requiring six times the DRAM of standard servers, leading to a severe shortage and a 75% price increase from December 2025 to January 2026, providing strong support for Micron's earnings growth.
- Jabil's AI Revenue Growth: Jabil anticipates a 35% increase in AI revenue to $12.1 billion in fiscal 2026, an improvement over the previously forecasted 25% growth, showcasing the success of its investment in expanding AI infrastructure manufacturing capacity.
- Attractive Investment Valuations: Micron's trailing P/E ratio of 24 is significantly lower than the Nasdaq-100's 31, indicating attractive stock value, while Jabil's forward P/E of 19 suggests both companies present compelling investment opportunities in the growing AI market.
See More
AI Infrastructure Spending Set to Surge
- Market Spending Forecast: According to Futurum's research, the spending on AI infrastructure by the five largest hyperscalers in the U.S. is expected to reach between $660 billion and $690 billion in 2026, a significant increase from last year's $380 billion, indicating a strong investment commitment to AI technology.
- Micron's Technological Edge: Micron's high-bandwidth memory (HBM) is critical for AI data centers, with predictions that AI servers will require six times the amount of DRAM compared to standard servers, driving up memory chip prices and leading analysts to be bullish on Micron's earnings growth prospects.
- Jabil's Growth Potential: Jabil plans to invest $500 million to expand its AI data center infrastructure manufacturing capacity, with projected AI revenue growth of 35% to $12.1 billion in fiscal 2026, showcasing its strong growth momentum in the AI infrastructure space.
- Investment Opportunities: Both Micron and Jabil stocks are currently trading at 24 times and 19 times forward earnings, respectively, which are below the Nasdaq-100's multiples, providing investors with attractive opportunities amidst the rapid growth of AI infrastructure.
See More
Nvidia Reports Record Earnings Amid Ongoing AI Boom
- Significant Revenue Growth: Nvidia's revenue surged 73% year-over-year to $68.1 billion, exceeding market expectations of $66.2 billion, highlighting its strong demand and dominant position in the AI sector.
- Margin Improvement: The company's gross margin increased from 73.4% to 75%, with adjusted net income rising 79% to $39.5 billion, translating to earnings per share of $1.62, significantly above the expected $1.54, reinforcing its profitability.
- Market Reaction: Despite the impressive results, Nvidia's stock rose over 3% post-earnings but faded during the earnings call, indicating that the market has largely priced in its known status, making it challenging for the stock to surge again.
- ETF Investment Opportunity: The VanEck Semiconductor ETF emerges as a smart diversification choice for investors, encompassing Nvidia, TSMC, and other leading semiconductor firms, providing broad exposure to the AI boom, although its P/E ratio of 45 suggests it may not be cheap, it is still seen as a potential growth stock.
See More
Micron Technology's Stock Soars 326% with Promising Prospects
- Stock Performance: Micron Technology's stock has surged 326% over the past year, significantly outperforming the Nasdaq Composite's 16% gain, reflecting strong performance in the semiconductor sector and investor confidence.
- Market Demand: Driven by the construction of AI data centers, demand for Micron's DRAM and NAND flash memory chips has skyrocketed, with a memory chip shortage expected to last until 2028, maintaining a favorable pricing environment.
- Revenue Growth Expectations: Market researcher TrendForce anticipates a 112% increase in NAND flash revenue to $147 billion in 2023, while DRAM market revenue is projected to grow by 144% to $404 billion, indicating strong growth potential for Micron in the coming years.
- Valuation Appeal: Despite the significant stock price increase, Micron's trailing P/E ratio stands at 24, below the tech sector's average of 42, and a forward P/E of 12 suggests a 309% earnings growth this fiscal year, indicating the stock is undervalued in terms of long-term growth potential.
See More
Micron Technology's Optimistic Outlook Amid Ongoing Chip Shortage
- Ongoing Chip Shortage: Micron Technology's memory chip shortage is expected to last until 2028, which will drive significant revenue growth for the company in the coming years, particularly fueled by the construction of AI data centers.
- Revenue Growth Expectations: Market researcher TrendForce forecasts a 112% increase in NAND flash revenue to $147 billion in 2023, while DRAM market revenue is expected to grow by 144% to $404 billion, providing robust support for Micron's performance.
- Attractive Valuation: Despite a remarkable 326% rise in stock price over the past year, Micron's trailing P/E ratio of 24 is below the U.S. tech sector average of 42, indicating its undervaluation given the strong growth potential, especially with analysts predicting a 309% increase in earnings this fiscal year.
- Long-term Investment Value: With a PEG ratio of 0.18, Micron is significantly undervalued when considering its long-term growth potential, making it a top AI stock even after impressive gains in its recent performance.
See More
Micron Technology Stock Soars 300% Amid AI Demand
- Surging Demand: Micron Technology's high-bandwidth memory products are experiencing unprecedented demand, with its entire 2026 supply already sold out, indicating strong competitive positioning in the rapidly growing AI market.
- Impressive Financial Performance: In the first quarter of fiscal 2026, revenue surged 57% year-over-year, with expectations for the second quarter to reach $18.7 billion, reflecting a 130% increase compared to the entire fiscal 2023, showcasing significant profitability improvements.
- Expansive Market Outlook: The high-bandwidth memory market is projected to grow from $35 billion in 2025 to $100 billion by 2028, and Micron's leading position in this sector will enable it to capitalize on future market expansion.
- Investor Confidence Rebounds: Despite risks associated with potential supply increases, the sustained strong demand for AI infrastructure suggests that Micron's stock may continue to rise, leading investors to maintain an optimistic outlook on its future performance.
See More
Surge in AI Infrastructure Demand Boosts Micron Technology
- Surge in AI Infrastructure Spending: According to Futurum, the top five hyperscalers in the U.S. are projected to spend between $660 billion and $690 billion on AI infrastructure in 2026, a significant increase from last year's $380 billion, indicating robust demand and growth potential in the AI market.
- Micron's DRAM Demand Soars: Micron Technology's DRAM chips are critical for AI data centers, with AI servers requiring six times the DRAM of standard servers, leading to a severe shortage and a 75% price increase from December 2025 to January 2026, providing strong support for Micron's earnings growth.
- Jabil's AI Revenue Growth: Jabil anticipates a 35% increase in AI revenue to $12.1 billion in fiscal 2026, an improvement over the previously forecasted 25% growth, showcasing the success of its investment in expanding AI infrastructure manufacturing capacity.
- Attractive Investment Valuations: Micron's trailing P/E ratio of 24 is significantly lower than the Nasdaq-100's 31, indicating attractive stock value, while Jabil's forward P/E of 19 suggests both companies present compelling investment opportunities in the growing AI market.
See More
AI Infrastructure Spending Set to Surge
- Market Spending Forecast: According to Futurum's research, the spending on AI infrastructure by the five largest hyperscalers in the U.S. is expected to reach between $660 billion and $690 billion in 2026, a significant increase from last year's $380 billion, indicating a strong investment commitment to AI technology.
- Micron's Technological Edge: Micron's high-bandwidth memory (HBM) is critical for AI data centers, with predictions that AI servers will require six times the amount of DRAM compared to standard servers, driving up memory chip prices and leading analysts to be bullish on Micron's earnings growth prospects.
- Jabil's Growth Potential: Jabil plans to invest $500 million to expand its AI data center infrastructure manufacturing capacity, with projected AI revenue growth of 35% to $12.1 billion in fiscal 2026, showcasing its strong growth momentum in the AI infrastructure space.
- Investment Opportunities: Both Micron and Jabil stocks are currently trading at 24 times and 19 times forward earnings, respectively, which are below the Nasdaq-100's multiples, providing investors with attractive opportunities amidst the rapid growth of AI infrastructure.
See More
Nvidia Reports Record Earnings Amid Ongoing AI Boom
- Significant Revenue Growth: Nvidia's revenue surged 73% year-over-year to $68.1 billion, exceeding market expectations of $66.2 billion, highlighting its strong demand and dominant position in the AI sector.
- Margin Improvement: The company's gross margin increased from 73.4% to 75%, with adjusted net income rising 79% to $39.5 billion, translating to earnings per share of $1.62, significantly above the expected $1.54, reinforcing its profitability.
- Market Reaction: Despite the impressive results, Nvidia's stock rose over 3% post-earnings but faded during the earnings call, indicating that the market has largely priced in its known status, making it challenging for the stock to surge again.
- ETF Investment Opportunity: The VanEck Semiconductor ETF emerges as a smart diversification choice for investors, encompassing Nvidia, TSMC, and other leading semiconductor firms, providing broad exposure to the AI boom, although its P/E ratio of 45 suggests it may not be cheap, it is still seen as a potential growth stock.
See More
Micron Technology's Stock Soars 326% with Promising Prospects
- Stock Performance: Micron Technology's stock has surged 326% over the past year, significantly outperforming the Nasdaq Composite's 16% gain, reflecting strong performance in the semiconductor sector and investor confidence.
- Market Demand: Driven by the construction of AI data centers, demand for Micron's DRAM and NAND flash memory chips has skyrocketed, with a memory chip shortage expected to last until 2028, maintaining a favorable pricing environment.
- Revenue Growth Expectations: Market researcher TrendForce anticipates a 112% increase in NAND flash revenue to $147 billion in 2023, while DRAM market revenue is projected to grow by 144% to $404 billion, indicating strong growth potential for Micron in the coming years.
- Valuation Appeal: Despite the significant stock price increase, Micron's trailing P/E ratio stands at 24, below the tech sector's average of 42, and a forward P/E of 12 suggests a 309% earnings growth this fiscal year, indicating the stock is undervalued in terms of long-term growth potential.
See More
Micron Technology's Optimistic Outlook Amid Ongoing Chip Shortage
- Ongoing Chip Shortage: Micron Technology's memory chip shortage is expected to last until 2028, which will drive significant revenue growth for the company in the coming years, particularly fueled by the construction of AI data centers.
- Revenue Growth Expectations: Market researcher TrendForce forecasts a 112% increase in NAND flash revenue to $147 billion in 2023, while DRAM market revenue is expected to grow by 144% to $404 billion, providing robust support for Micron's performance.
- Attractive Valuation: Despite a remarkable 326% rise in stock price over the past year, Micron's trailing P/E ratio of 24 is below the U.S. tech sector average of 42, indicating its undervaluation given the strong growth potential, especially with analysts predicting a 309% increase in earnings this fiscal year.
- Long-term Investment Value: With a PEG ratio of 0.18, Micron is significantly undervalued when considering its long-term growth potential, making it a top AI stock even after impressive gains in its recent performance.
See More
