The 1 Metric That Tells Me This Tech Stock Is About to Rip Higher — and It Just Flashed
The 1 Metric That Tells Me This Tech Stock Is About to Rip Higher — and It Just Flashed
https://www.fool.com/investing/2026/05/30/the-1-metric-that-tells-me-this-tech-stock-is-abou/
Publish Date: 2026-05-30 17:25:00
Source Domain: www.fool.com
Artificial intelligence (AI) infrastructure spending has rocketed higher in recent years. Importantly, there are no signs of a slowdown in AI infrastructure spending.
This is great news for Micron Technology (MU +5.07%), which provides a critical component that helps chips used for running AI applications unlock their full potential. In fact, a recent report suggests that massive investments in AI data centers will get even bigger in 2026. This is your signal to buy Micron stock, as the memory specialist is the direct beneficiary of a spike in AI infrastructure spending.
Let’s look at the reasons why.
Image source: Micron Technology.
The increasing data center capex will be a tailwind for Micron Technology
Market research firm TrendForce substantially raised its 2026 capital expenditure forecast by the world’s top nine cloud service providers (CSPs) this month. The firm expects a 79% jump in capex by CSPs this year, up from the earlier estimate of a 61% improvement.
Today’s Change
(5.07%) $46.82
Current Price
$970.34
Key Data Points
Market Cap
$1.1T
Day’s Range
$940.59 – $981.21
52wk Range
$94.40 – $981.21
Volume
1.8M
Avg Vol
47.8M
Gross Margin
58.54%
Dividend Yield
0.05%
The overall capex will come in at a whopping $830 billion, and growth in this metric will exceed the 79% increase seen last year. TrendForce notes that the capex will mostly be allocated toward developing GPU (graphics processing unit) clusters and custom AI processors.
Both these chips are equipped with more high-bandwidth memory (HBM) to ensure they can be fed massive datasets quickly and don’t sit idle, thereby reducing downtime associated with running AI workloads. For instance, the demand for HBM used in custom AI processors is expected to jump by 35x between 2024 and 2028, according to Counterpoint Research.
Meanwhile, Nvidia’s move to equip its latest Vera Rubin GPU with 288 gigabytes (GB) of HBM, as compared to the 80GB HBM on the highly popular H100 GPU that was launched in 2022, makes it clear that…
