Micron Set to Benefit from Amazon's Memory Chip Demand
Amazon's massive capital expenditure bill of $220 billion in 2026 has been driven by huge demand for increased computing capacity, according to the company.
The tech giant cited memory as the key driver behind its revised projection, which is up from its initial $200 billion forecast. Micron, a major player in the memory chip sector, stands to benefit significantly from this trend.
Amazon's clients are still in the early stages of deploying AI on a wide scale, and the company expects inference workloads to skyrocket in the near future. This will lead to even higher demand for computing capacity and memory chips, which could remain scarce due to insufficient supply.
Micron's stock is considered cheap given its potential for strong growth in the coming years. Analysts project an 85% increase in revenue during fiscal year 2027, with earnings per share expected to rise from $73.43 to $155.56.