Micron Falls 2.55% as Google, Amazon Scale 2026 AI Capital Spending
Micron shares dropped 2.55% after Alphabet raised its 2026 capital expenditure forecast to $175–185 billion and Amazon set its outlay at $200 billion, driving gains in AI chip suppliers. Investors rotated into Broadcom and Nvidia on expectations that AI infrastructure spending will outpace memory market growth.
1. Big Tech Capex Growth
Alphabet boosted its 2026 capital expenditure forecast to $175–185 billion while Amazon set its 2026 capex at $200 billion, driving total Big Tech spending toward $550–600 billion next year, up from about $380 billion in 2025.
2. Semiconductor Stocks Reaction
Nvidia and Broadcom shares rose over 1.5%–3.5% on the capex news, whereas Micron Technology shares fell 2.55% as investors favored AI processor and GPU suppliers over traditional memory chip makers.
3. Implications for Micron
The surge in AI infrastructure spending signals stronger demand for GPUs and custom AI processors, potentially sidelining DRAM and NAND suppliers like Micron amid intensifying margin competition.
4. Market Outlook
Global semiconductor sales reached $791.7 billion in 2025 and are projected to grow 26% in 2026 to about $1 trillion, underscoring a market shift toward AI-driven hardware components.