Shares of Micron Technology (MU) are sliding lower after Chief Financial Officer (CFO) Mark Murphy signaled that the memory and computer data storage company plans to increase its artificial intelligence (AI) capital expenditures.
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Speaking at the RBC Capital Markets’ (RY) 2025 Global Technology conference, Murphy said investors and shareholders should expect increased capex. Specifically, the CFO said that Micron’s current capital spending of $18 billion annually will face “pressure” and will likely need to increase in 2026 and beyond.
The comments about raising Micron’s capex come as Wall Street grows increasingly nervous about the billions of dollars being spent on artificial intelligence infrastructure such as data centers and large language models, sending MU stock lower.
Micron’s Technological Position
In addition to the comments about capex, Micron’s Chief Technical Officer Scott DeBoer said at the same conference that the company’s technological position is the “strongest in history” with mature yields and ongoing product ramps planned over the coming two years.
Still, investors seem preoccupied with the comments about increased capital requirements and expenditures. Murphy didn’t mention a specific dollar figure. He emphasized that Micron remains disciplined on investments, but said that AI spending increases are “inevitable.”
Is MU Stock a Buy?
The stock of Micron Technology has a consensus Strong Buy rating among 29 Wall Street analysts. That rating is based on 26 Buy and three Hold recommendations issued in the last three months. The average MU price target of $227.14 implies 0.55% downside from current levels.
