Micron Ramps FY26 CapEx to Over $25B on AI Demand, Signs First 5-Year Strategic Customer Agreement

Micron Technology has dramatically increased its fiscal year 2026 capital expenditure (CapEx) plan to over $25 billion to address the surge in AI-related demand. This represents an approximately 81% increase from the previous year's $13.8 billion, with FY2027 CapEx expected to exceed even this level. In the company's Q2 FY2026 earnings, revenue reached $23.9 billion, roughly tripling year-over-year, with earnings per share of $12.20. Gross margin reached 74.4% and net income surged to $13.8 billion. CEO Sanjay Mehrotra revealed the signing of the company's first 5-year Strategic Customer Agreement (SCA) and stated that negotiations for long-term contracts with multiple customers are underway. This aims to strengthen customer relationships and enhance business visibility and stability. The surge in demand for HBM (High Bandwidth Memory) for AI servers is the primary driver behind this aggressive capital investment. There is a growing consensus that the memory industry as a whole is breaking free from traditional cyclical patterns and entering a sustained growth period driven by AI demand. Competitors including Samsung and SK Hynix are also pursuing long-term supply agreements with major customers, demonstrating that semiconductor memory is transforming from a mere commodity into a strategic component supporting AI infrastructure.