Business Insider Micron stock jumped on news that it will boost spending for US chip making. It was a rare moment of excitement among investors over ballooning capex.
- Micron stock popped as much as 9% on Thursday.
- Driving the move is news that the memory company will spend an additional $50 billion on chipmaking capabilities.
- The Trump administration praised the news of increased spending.
Micron on Thursday is proving that AI capex can still get investors excited about a stock.
Shares popped as much as 9% after the memory-chip maker announced that it will boost capex spending by $50 billion, bringing the estimated total through 2035 to $250 billion.
Other memory makers were also up after a tough few days that dragged the sector into a bear market. Sandisk and Western Digital each rose 7%. The Roundhill Memory ETF — which contains South Korean titans Samsung and SK Hynix — was also up 7%.
"Micron anticipates that the increase in investments will support its long-term goal of producing 40% of its [dynamic random-access memory] in the U.S. while creating additional good-paying direct and indirect jobs," the company said on Thursday.
Micron's stock jump is a rare moment of excitement in the market about rising capex. After rewarding the biggest spenders throughout 2025, investors have become more mixed on the blistering pace of AI capex from hyperscalers like Meta, Amazon, and Microsoft, and the Magnificent Seven group has lagged the broader Nasdaq 100 this year as a result.
A shortage of memory capacity driven by the AI buildout has allowed Micron and its peers to break away from the rest of the AI trade. On its face, a move that alleviates a shortage that's helped push margin growth might seem like a negative development, but for now, investors are responding by piling into the stock.
The increased spending on US manufacturing is also being applauded by another important group: the Trump administration.
"President Trump has made it clear that America is where you should build your business and the world is responding rapidly," Commerce Secretary Howard Lutnick said. "The Trump economic model clearly shows there has never been a better time to invest in the United States."
Business Insider Get AI news in your inbox
Daily digest of what matters in AI.