- Tech companies plan to invest $750 billion in AI capital expenditures this year.
- Alphabet has committed up to $190 billion in AI spending this year, with expectations for further increases next year.
- Micron's Q3 2026 sales surged 345% to $41.5 billion, with adjusted EPS skyrocketing 1,300% to $24.67.
- Management reported a data center revenue run rate of $100 billion for 2026.
- Three analysts have raised their price targets for Micron to $1,500, indicating a 45% potential gain.
- Some investors expressed disappointment as management did not raise its full-year AI chip guidance.
- The current AI supercycle is driving significant demand for Micron's memory chips.
- Micron is benefiting from rising demand for AI data center memory, which is increasing memory prices and profits.
- Despite a 740% return over the past 12 months, analysts believe Micron could still rise higher.
Micron Technology is experiencing a significant bullish trend as three analysts have raised their price target to $1,500, a 45% increase from its current valuation. This optimism is fueled by a massive $750 billion in capital expenditures from leading tech companies, primarily for AI initiatives.15
In the third quarter of 2026, Micron reported a staggering 345% increase in sales, reaching $41.5 billion, while adjusted earnings per share skyrocketed over 1,300% to $24.67. Management indicated a run rate for data center revenue of $100 billion for 2026, highlighting the company's robust position in the AI market.34
Despite some investor concerns regarding AI spending volatility, Micron remains highly profitable and is capitalizing on a unique demand environment for its memory processors. The ongoing AI supercycle is expected to sustain this demand, with analysts noting that even after a 740% return over the past year, Micron's stock could still rise further.79
As Alphabet plans to invest up to $190 billion this year, the overall spending in AI is driving up memory prices and profits for Micron, solidifying its strong market position.2
“Alphabet plans to spend up to $190 billion on AI this year, expecting to increase next year, fueling demand for Micron's memory chips. Micron's data center revenue run rate is $100 billion for 2026, and adjusted EPS surged 1,300% to $24.67 in Q3, though some investors remain wary of AI spending sustainability.”
Yahoo Finance
AOL.com
