micron shares rose nearly 8% on Friday as investors sought to buy AI chip supply chain Taiwan Semiconductor Manufacturing Co reliable income on Thursday, signaling continued spending on AI infrastructure.
Shares of Micron, one of the makers of memory and storage for artificial intelligence systems, have surged more than 250% in the past year as memory is in short supply worldwide and is on the rise. increase in demand. Memory is used in AI systems to keep large amounts of data close to the graphics processing unit, or GPU, so it can run large AI models without slowing down.
“Demand for artificial intelligence is accelerating, Micron CEO Sanjay Mehrotra told CNBC’s Jim Cramer. “It’s real. It’s here, and we need more storage to meet that demand.”
Mehrotra said Micron will spend $200 billion to build additional manufacturing facilities in the U.S., including two plants, or factories, in Idaho and a 600,000-foot facility in Clay, New York, where the company broke ground on Friday. According to Mehrotra, it will take several years to build the facilities, including clean rooms and production equipment. Commerce Secretary Howard Lutnick involved lay the foundation. Micron said it would invest $100 billion in the fab.
He said Micron is also working to produce more chips at its existing facilities in the near future.
At the beginning of 2025, Micron expected 10% growth for server memory, but this growth was in the “high teens” by the end of the year. Mehrotra also said the company saw stronger-than-expected growth in PC memory and storage.
“We see this density continuing through 2027, so we see long-term industry fundamentals in the near future based on AI demand,” Mehrotra said.
It is in a hurry to supply the memory demand of such companies Nvidia, Advanced Micro Devices and Google led to shortages, and prices of the critical component are expected to rise nearly 55% in the first quarter, CNBC reported previously reported.