Micron’s CEO Says Even His Own Customers Couldn’t See This Coming. Now He’s Spending $200 Billion

Sanjay Mehrotra sat with Jim Cramer connected June 30, 2026 and said the quiescent portion retired large astir the AI representation boom. "Even our customers could not forecast this demand." Coming from the CEO whose institution sells the representation going into each AI accelerator, that is rather the admission. And it explains wherefore Micron Technology (NASDAQ:MU) is present penning checks connected a standard the semiconductor manufacture seldom sees.

The 2023 stake that funded everything aft

Rewind 3 years. Memory was successful a downcycle that ends careers. Micron's fiscal 2023 gross collapsed to $15.54 cardinal with a $5.83 cardinal nett nonaccomplishment and a antagonistic gross margin. Mehrotra's statement to Cramer was blunt: "In 23, our prices came down to 1 3rd of what they were... Yet Micron had the imaginativeness of investing for the future." The institution sunk astir $10 cardinal successful 2023 into exertion and proviso portion competitors slashed capex.

That contrarian determination present looks similar the setup for 1 of the much convulsive operating leverage stories successful tech. Q3 FY2026 gross deed $41.46 billion, and operating borderline ran astatine 80.4% for the quarter. The banal is up 754% implicit the past twelvemonth and 227% twelvemonth to date, though shares gave backmost 9.67% connected July 1 arsenic investors caught their breath.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Micron Technology didn't marque the cut. Grab the names FREE today.

Why $200 billion, and wherefore present

The centerpiece of the Cramer speech was the superior plan. "We are investing $200 cardinal of investments close present successful the U.S... These investments are precise overmuch geared toward trying to bring connected supply," Mehrotra said. That fig covers the Boise, Idaho fabs and the New York tract successful Clay, on with R&D, dispersed implicit astir 2 decades.

The near-term mathematics is already accelerating. On the fiscal Q2 call, CFO Mark Murphy said "We expect fiscal 2026 CapEx to beryllium supra $25,000,000,000" and flagged that construction-related capex would summation by much than $10 cardinal twelvemonth implicit twelvemonth successful fiscal 2027.