Goldman Sachs Predicts Over $500 Billion AI Spending by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy MU?
Source: Fool
- Surge in AI Hardware Spending: Analysts at Goldman Sachs predict that tech giants will exceed $500 billion in AI-related capital expenditures by 2026, with a significant portion allocated to data center hardware like AI accelerator chips and high-bandwidth memory devices, driving market demand and investment returns for related companies.
- Micron Technology's Strong Growth: Micron's fiscal first-quarter revenue surged 57% year-over-year to $13.6 billion, primarily driven by cloud data center purchases, and with memory shortages expected to last until 2027, the company is positioned for a near-term windfall that could be reinvested or returned to shareholders through stock buybacks.
- Broadcom's Custom Chip Opportunity: Broadcom's application-specific integrated circuits (ASICs) provide optimized hardware solutions for clients, with fourth-quarter revenue increasing 28% year-over-year to $18 billion, and AI semiconductor revenue soaring 74% due to custom chip demand, showcasing its strong competitive position in the AI market.
- Shifting Market Dynamics: As the generative AI industry matures, Broadcom's strategic partnerships with OpenAI and Google indicate that the custom chip market will continue to expand, positioning Broadcom to capture greater market share, and despite a forward P/E of 31, it remains a reasonable investment choice.
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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: 421.510
Low
235.00
Averages
336.12
High
500.00
Current: 421.510
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 Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
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: A Strategic Asset in the AI Era
- Surging Market Demand: Micron Technology anticipates that sustained demand for memory in data centers could push its stock price close to $700 within the next year, representing a 65% upside from the current price of $420, highlighting strong market potential and investment appeal.
- Impressive Financial Performance: In its latest earnings report, Micron's revenue nearly tripled year-over-year, and management is guiding for another record quarter in Q3, indicating that the company is on a robust growth trajectory driven by AI demand in the memory sector.
- Strategic Customer Agreement: Micron has signed its first five-year strategic customer agreement aimed at locking in long-term demand, which will allow better production planning and help avoid the cyclical volatility typical in the memory market, enhancing the company's stability in the market.
- Capacity Expansion Risks: While Micron is expanding its manufacturing capacity to meet market demand, there is a risk that excess supply could lead to lower selling prices, negatively impacting revenues and earnings, with analysts projecting a drop in earnings to $78 in fiscal 2028, indicating potential market risks.
See More
Micron Technology's Stock Soars on AI Demand Surge
- Revenue Surge: Micron Technology's revenue nearly tripled year-over-year in its recently completed fiscal second quarter, with management guiding for another record quarter in Q3, highlighting the strong demand for memory products driven by AI applications and solidifying its market position.
- Strategic Customer Agreement: The signing of its first five-year strategic customer agreement could help Micron lock in long-term demand, allowing for better production capacity planning and mitigating traditional supply-demand fluctuations, thereby enhancing company stability.
- Significant Stock Potential: With the current share price at $420, if Micron meets the consensus earnings estimate of $99 next year, the stock could rise by 65% to approximately $693, reflecting investor optimism about future growth prospects.
- Risks and Challenges: While Micron is expanding manufacturing capacity to meet market demand, excess supply could lead to lower selling prices, impacting revenues and earnings; analysts predict a drop in earnings to $78 in fiscal 2028, indicating the cyclical risks inherent in the memory market.
See More
Recent Updates on Amazon and AI Stocks
- AI Stock Updates: The video discusses recent updates affecting Amazon and other AI stocks, highlighting ongoing market interest in AI technology, which may influence investor decisions and market trends.
- Unique Company Report: A report mentions a company labeled as an 'Indispensable Monopoly' providing critical technology needed by Nvidia and Intel, indicating its strategic importance and market potential.
- Investment Opportunities: The analyst team issues 'Double Down' stock recommendations for companies expected to rise, reflecting confidence in these stocks and potential returns for investors.
- Motley Fool Recommendations: Motley Fool recommends Amazon, Marvell Technology, and Nvidia, underscoring their significance in investment portfolios and potentially attracting more investor attention.
See More
Recent Updates on Amazon and AI Stocks
- Video Update: Today's video discusses recent updates affecting Amazon and other AI stocks, aiming to provide investors with timely information and market insights.
- Market Reaction: As of April 9, 2026, Amazon's stock price rose by 1.91% in after-hours trading, indicating optimistic market sentiment regarding its future performance.
- Investor Engagement: The video encourages viewers to subscribe to the channel and click on a special offer link, suggesting that the content aims to attract more investors' attention to the dynamics of related stocks.
- Content Delivery: By utilizing video format to convey information, it combines visual and auditory elements to enhance viewer understanding and engagement, catering to modern investors' consumption habits.
See More
Apple Launches Lowest-Priced MacBook Neo to Attract Users
- Product Launch: Apple's introduction of the MacBook Neo, starting at $599, represents the company's lowest-priced laptop ever, aimed at attracting budget-conscious consumers, particularly college students, thereby expanding its user base.
- Market Competition Strategy: The launch of the Neo directly counters budget laptops like Google's Chromebooks and entry-level Windows machines, with analysts noting that the Neo offers a more compelling configuration at its price point, enhancing Apple's competitiveness in the education market.
- Service Revenue Growth: Apple's strategy extends beyond device sales to include attracting users to its high-margin services, with analysts predicting that the Neo's launch will bring in more long-term users for Apple's services, thereby driving revenue growth.
- Market Potential Assessment: According to Bank of America, the total addressable market for the Neo could reach $32 billion by 2026, and if Apple captures 10% of that market, it could increase earnings per share by 3 cents, despite challenges from rising memory costs.
See More
Google's TurboQuant Technology Boosts Memory Demand
- Technological Innovation: Google's introduction of TurboQuant technology, which compresses the memory requirements for large language models (LLMs), is expected to increase memory demand, despite market concerns about memory manufacturers' prospects.
- Market Impact: As the number of parameters in LLMs skyrocketed from 0.09 billion in 2019 to 540 billion in 2022, the successful implementation of TurboQuant will drive demand for larger, more efficient models, boosting memory chip sales.
- Data Growth: AI-driven applications are projected to generate 394 zettabytes of data by 2028, a significant increase from 72 zettabytes in 2020, enhancing the market outlook for companies like Micron, Sandisk, and Seagate.
- Investment Opportunity: While Seagate's price-to-earnings ratio stands at 24, slightly above the Nasdaq-100's 23, its projected 61% earnings growth makes it a worthy investment, and the low P/E ratios of Micron and Sandisk present attractive opportunities, indicating significant potential for stock price increases in the future.
See More
Micron Technology: A Strategic Asset in the AI Era
- Surging Market Demand: Micron Technology anticipates that sustained demand for memory in data centers could push its stock price close to $700 within the next year, representing a 65% upside from the current price of $420, highlighting strong market potential and investment appeal.
- Impressive Financial Performance: In its latest earnings report, Micron's revenue nearly tripled year-over-year, and management is guiding for another record quarter in Q3, indicating that the company is on a robust growth trajectory driven by AI demand in the memory sector.
- Strategic Customer Agreement: Micron has signed its first five-year strategic customer agreement aimed at locking in long-term demand, which will allow better production planning and help avoid the cyclical volatility typical in the memory market, enhancing the company's stability in the market.
- Capacity Expansion Risks: While Micron is expanding its manufacturing capacity to meet market demand, there is a risk that excess supply could lead to lower selling prices, negatively impacting revenues and earnings, with analysts projecting a drop in earnings to $78 in fiscal 2028, indicating potential market risks.
See More
Micron Technology's Stock Soars on AI Demand Surge
- Revenue Surge: Micron Technology's revenue nearly tripled year-over-year in its recently completed fiscal second quarter, with management guiding for another record quarter in Q3, highlighting the strong demand for memory products driven by AI applications and solidifying its market position.
- Strategic Customer Agreement: The signing of its first five-year strategic customer agreement could help Micron lock in long-term demand, allowing for better production capacity planning and mitigating traditional supply-demand fluctuations, thereby enhancing company stability.
- Significant Stock Potential: With the current share price at $420, if Micron meets the consensus earnings estimate of $99 next year, the stock could rise by 65% to approximately $693, reflecting investor optimism about future growth prospects.
- Risks and Challenges: While Micron is expanding manufacturing capacity to meet market demand, excess supply could lead to lower selling prices, impacting revenues and earnings; analysts predict a drop in earnings to $78 in fiscal 2028, indicating the cyclical risks inherent in the memory market.
See More
Recent Updates on Amazon and AI Stocks
- AI Stock Updates: The video discusses recent updates affecting Amazon and other AI stocks, highlighting ongoing market interest in AI technology, which may influence investor decisions and market trends.
- Unique Company Report: A report mentions a company labeled as an 'Indispensable Monopoly' providing critical technology needed by Nvidia and Intel, indicating its strategic importance and market potential.
- Investment Opportunities: The analyst team issues 'Double Down' stock recommendations for companies expected to rise, reflecting confidence in these stocks and potential returns for investors.
- Motley Fool Recommendations: Motley Fool recommends Amazon, Marvell Technology, and Nvidia, underscoring their significance in investment portfolios and potentially attracting more investor attention.
See More
Recent Updates on Amazon and AI Stocks
- Video Update: Today's video discusses recent updates affecting Amazon and other AI stocks, aiming to provide investors with timely information and market insights.
- Market Reaction: As of April 9, 2026, Amazon's stock price rose by 1.91% in after-hours trading, indicating optimistic market sentiment regarding its future performance.
- Investor Engagement: The video encourages viewers to subscribe to the channel and click on a special offer link, suggesting that the content aims to attract more investors' attention to the dynamics of related stocks.
- Content Delivery: By utilizing video format to convey information, it combines visual and auditory elements to enhance viewer understanding and engagement, catering to modern investors' consumption habits.
See More
Apple Launches Lowest-Priced MacBook Neo to Attract Users
- Product Launch: Apple's introduction of the MacBook Neo, starting at $599, represents the company's lowest-priced laptop ever, aimed at attracting budget-conscious consumers, particularly college students, thereby expanding its user base.
- Market Competition Strategy: The launch of the Neo directly counters budget laptops like Google's Chromebooks and entry-level Windows machines, with analysts noting that the Neo offers a more compelling configuration at its price point, enhancing Apple's competitiveness in the education market.
- Service Revenue Growth: Apple's strategy extends beyond device sales to include attracting users to its high-margin services, with analysts predicting that the Neo's launch will bring in more long-term users for Apple's services, thereby driving revenue growth.
- Market Potential Assessment: According to Bank of America, the total addressable market for the Neo could reach $32 billion by 2026, and if Apple captures 10% of that market, it could increase earnings per share by 3 cents, despite challenges from rising memory costs.
See More
Google's TurboQuant Technology Boosts Memory Demand
- Technological Innovation: Google's introduction of TurboQuant technology, which compresses the memory requirements for large language models (LLMs), is expected to increase memory demand, despite market concerns about memory manufacturers' prospects.
- Market Impact: As the number of parameters in LLMs skyrocketed from 0.09 billion in 2019 to 540 billion in 2022, the successful implementation of TurboQuant will drive demand for larger, more efficient models, boosting memory chip sales.
- Data Growth: AI-driven applications are projected to generate 394 zettabytes of data by 2028, a significant increase from 72 zettabytes in 2020, enhancing the market outlook for companies like Micron, Sandisk, and Seagate.
- Investment Opportunity: While Seagate's price-to-earnings ratio stands at 24, slightly above the Nasdaq-100's 23, its projected 61% earnings growth makes it a worthy investment, and the low P/E ratios of Micron and Sandisk present attractive opportunities, indicating significant potential for stock price increases in the future.
See More
