Investors question long-term viability of AI infrastructure investments as chip costs surge, pressuring Micron despite strong demand.
Micron Technology (NASDAQ: MU) shares fell 32% from their June peak, despite the company’s leading role in high-bandwidth memory (HBM) for AI data centers. Demand for HBM remains robust, but rising chip costs are raising doubts about the sustainability of AI infrastructure spending.
The stock has still gained nearly 700% over the past year, reflecting earlier optimism. However, projections estimate U.S. data center capacity could require $5.9 trillion in investment by 2030, with each gigawatt costing $50 billion. Companies must generate returns on this spending to justify the outlay.
Market concerns center on whether AI deployments will remain financially viable as component prices climb, weighing on Micron’s near-term outlook.