Amazon Boosts Capital Expenditures Amid Rising Demand
Amazon announced an increase in its capital expenditures to $220 billion for 2026 during its earnings call on July 30, up from an earlier estimate of $200 billion, primarily due to rising memory costs. CEO Andy Jassy noted that even with this increase, Amazon’s AI infrastructure spending will struggle to meet the significant demand projected through 2028.
This news initially pointed to positive implications for Micron Technology, a key supplier of high bandwidth memory for AI infrastructure. However, Micron’s stock fell 5.9%, from $874.66 on July 30 to $823.03 on July 31, likely due to profit-taking following an 18.3% increase in share price just before Amazon’s report. Despite this dip, Micron’s stock has surged over 660% in the past year.
Micron is adapting to shifting market dynamics by locking in long-term contracts, securing $22 billion in cash deposits and related financial commitments. The company is positioning itself for a continued period of strong demand, with expectations that supply will not catch up until at least 2028.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
