Micron Technology, Inc. (NASDAQ: MU) shares are trading lower after the company raised its 2024 capex expectations on Tuesday.
The key $280 billion U.S. CHIPS Act beneficiary now expects fiscal 2024 capital expenditure of $8 billion, higher than prior expectations of $7.5 billion.
Micron is a leading provider of high-bandwidth memory (HBM) chips, which are critical components of the hardware used in artificial intelligence servers. Nvidia Corp’s (NASDAQ:NVDA) H200 chips will leverage Micron’s advanced HBM3E.
Also Read: Micron’s $6.1B CHIPS Act Funding Propels Major Expansion In US
“In fiscal 2025, we expect HBM to be a multibillion-dollar business for us,” Reuters cites COO Manish Bhatia said at the J.P. Morgan Technology, Media and Communications Conference.
Micron expects to enable more than 50% of the PCs to be AI-enabled by 2027.
Micron also announced a strategic expansion in workforce development initiatives to diversify the semiconductor workforce and build a robust talent pipeline through education and career reentry initiatives.
Micron has tapped GlobalFoundries Inc (NASDAQ:GFS), the U.S. National Science Foundation (NSF), and additional leaders in industry, government, and education to boost access to opportunities and to meet the growing demand for semiconductor talent in the U.S.
Analysts had predicted Micron’s upside from its HBM market moat. They also saw upsides from strong DRAM pricing, shipments of higher-priced, higher-margin products, and increased AI exposure.
Micron stock gained 94% in the last 12 months. Investors can gain exposure to the stock via Invesco Semiconductors ETF (NYSE:PSI) and REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI).
Price Action: MU shares traded lower by 0.60% at $128.21 at the last check Tuesday.
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This article What’s Going On With Biden’s Chips Act Beneficiary Micron Tech Stock Tuesday? originally appeared on Benzinga.com
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