Micron Technology Raises 2026 CapEx to $20 Billion to Support HBM Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Industry Growth Potential: According to Yole Group, the memory industry is projected to grow by 78% in 2024 to $170 billion, followed by another increase to $200 billion in 2025, indicating strong market demand and investment opportunities.
- Micron's Revenue Surge: Micron Technology reported a 57% year-over-year revenue increase to $13.6 billion in the latest quarter, with non-GAAP earnings soaring nearly 2.7 times, reflecting its robust performance in the high-bandwidth memory (HBM) market.
- CapEx Increase: Micron has raised its fiscal 2026 capital expenditure budget from $18 billion to $20 billion, a 45% increase, to meet the surging demand for HBM, demonstrating the company's confidence in future market conditions.
- Expanding Market Opportunities: Lam Research anticipates its fiscal 2026 revenue will reach $21.3 billion, a 15% increase year-over-year, and highlights that the demand for AI data centers will significantly expand its total addressable market, further driving company growth.
Analyst Views on LRCX
Wall Street analysts forecast LRCX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LRCX is 162.55 USD with a low forecast of 105.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
16 Buy
5 Hold
0 Sell
Strong Buy
Current: 171.180
Low
105.00
Averages
162.55
High
200.00
Current: 171.180
Low
105.00
Averages
162.55
High
200.00
About LRCX
Lam Research Corporation is a global supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Its products and services are designed to help its customers build devices that are used in a variety of electronic products, including mobile phones, personal computers, servers, wearables, automotive vehicles, and data storage devices. Its product families include ALTUS, SABRE, SPEED, Striker, VECTOR, Flex, Vantex, Kiyo, Versys Metal, Syndion, Coronus, and DV-Prime, Da Vinci, EOS, and SP Series. Its customer base includes semiconductor memory, foundries, and integrated device manufacturers that make products such as non-volatile memory, dynamic random-access memory, and logic devices. It offers services in areas, such as nanoscale applications enablement, chemistry, plasma and fluidics, and others.
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.
