Micron expects capital expenditure for the first half of fiscal year 2027 to be around $25 billion, higher in the second half of the year, and most of the increase will be used to build new fabs rather than simply purchasing equipment. Mark Murphy, CFO of Micron Technology, explained that this is entirely because long orders provide sufficient visibility into demand, and the construction of a new greenfield plant requires an extremely long lead time. Charu Chanana, chief investment strategist at Saxo Bank, said, “Micron's performance once again strongly validates AI and memory demand, but the market may increasingly ask if we are nearing the peak of memory shortages, even if demand exceeds supply. The macro context has also become more complex. Weak US data has eased the pressure on the Fed's expectations and short-term yields, but long-term yields are still high, so concerns about capital costs have not really subsided.”

Micron expects capital expenditure for the first half of fiscal year 2027 to be around $25 billion, higher in the second half of the year, and most of the increase will be used to build new fabs rather than simply purchasing equipment. Mark Murphy, CFO of Micron Technology, explained that this is entirely because long orders provide sufficient visibility into demand, and the construction of a new greenfield plant requires an extremely long lead time. Charu Chanana, chief investment strategist at Saxo Bank, said, “Micron's performance once again strongly validates AI and memory demand, but the market may increasingly ask if we are nearing the peak of memory shortages, even if demand exceeds supply. The macro context has also become more complex. Weak US data has eased the pressure on the Fed's expectations and short-term yields, but long-term yields are still high, so concerns about capital costs have not really subsided.”