Micron Sinks 32% From June High as $5.9 Trillion AI Build-Out Faces Spending Doubts
Updated
Updated · The Motley Fool · Jul 31
Micron Sinks 32% From June High as $5.9 Trillion AI Build-Out Faces Spending Doubts
2 articles · Updated · The Motley Fool · Jul 31
Summary
Micron has fallen 32% from its June record high as investors question whether AI customers can sustain the infrastructure spending needed to keep memory demand booming.
Bloomberg projects 118 gigawatts of U.S. data-center capacity by 2030, and Nvidia says each gigawatt costs about $50 billion to build—implying roughly $5.9 trillion in capital spending.
Rising AI costs are already prompting restraint: Uber said Anthropic's Claude Code exhausted its 2026 AI budget in four months, while Amazon and Walmart have capped some employee AI usage.
UBS found 60% of businesses are shifting tasks to cheaper AI models, a trend that could curb demand for computing capacity and eventually weaken sales for chip suppliers like Micron.
Micron's own results remain strong for now—fiscal third-quarter revenue jumped 346% to $41.4 billion—but investors are looking past current shortages and pricing power toward a possible demand and margin slowdown.