Micron Rallies as Big Tech’s AI Capex Hits $700B, Chip Sales Up 26%
Semiconductor stocks including Micron Technology surged after Alphabet and Amazon raised their 2026 AI capital expenditure forecasts following Big Tech’s nearly $700 billion AI spending surge. The Semiconductor Industry Association reported global chip sales reached $791.7 billion in 2025 and are projected to grow 26% in 2026 due to escalating AI demand.
1. Big Tech AI Capex Surge
Amazon increased its 2026 AI infrastructure budget to $200 billion, Alphabet raised its capex to up to $185 billion and Meta earmarked $135 billion, driving Big Tech’s projected AI spending toward $700 billion. These elevated forecasts followed announcements of hyperscalers accelerating data-center and compute investments.
2. Robust Chip Sales Growth
The Semiconductor Industry Association reported global chip sales reached $791.7 billion in 2025 and forecast a 26% increase in 2026, attributing the surge to mounting AI deployments and expanded data-center capacity requirements. AI-driven demand is expected to underpin sustained industry expansion.
3. Micron Benefits from AI Demand
Micron Technology shares rose alongside peers as the influx of AI capital expenditures bolsters memory chip demand across hyperscalers. While Nvidia is positioned to capture 40%–50% of AI infrastructure spending, broad industry growth is lifting revenues and order pipelines for all major semiconductor suppliers, including Micron.