TrendForce forecasts a 79% jump in cloud service providers’ capex to $830 billion in 2026, boosting demand for high-bandwidth memory chips.
Micron Technology (NASDAQ: MU) stands to benefit from a sharp rise in AI infrastructure spending, driven by cloud service providers’ increased capital expenditures. TrendForce revised its 2026 capex forecast for the top nine CSPs, projecting a 79% increase to $830 billion, up from a prior 61% estimate.
The surge in spending will focus on GPU clusters and custom AI processors, both requiring high-bandwidth memory (HBM) to handle large datasets efficiently. This trend mirrors last year’s 79% capex growth but scales significantly higher, reflecting sustained demand for AI capabilities.
Micron, a key supplier of HBM, is positioned to capitalize on this growth as AI workloads expand. The company’s role in reducing downtime for AI applications further strengthens its market outlook.