In this article:
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Rising AI infrastructure spend bodes well for data center services and GPU designers.
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Access to high-caliber memory and storage solutions should arise alongside increased demand for GPUs.
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Micron Technology has a budding high-bandwidth memory solutions business, yet it trades at a considerable discount to other leading semiconductor stocks.
Over the last few weeks, several big tech companies have reported earnings for the second calendar quarter of 2025. One of the biggest takeaways from behemoth artificial intelligence (AI) developers like Alphabet, Meta Platforms, Microsoft, and Amazon is that investment in infrastructure continues to surge. Collectively, these companies are expected to spend more than $330 billion on AI infrastructure this year alone.
A large portion of this capital is going to data center buildouts, networking equipment, servers, and more chips, of course. At first glance, these secular tailwinds may appear most favorable for GPU designers such as Nvidia and Advanced Micro Devices.
However, rising GPU acquisition ignites demand for other mission-critical services within the broader semiconductor landscape, too.
Let's dig into why Micron Technology (NASDAQ: MU) also looks well positioned alongside its chip peers to benefit from rising AI infrastructure spend from the hyperscalers.
Is now a good time to scoop up shares of Micron with earnings scheduled for September? Read on to find out.
Nvidia and AMD design advanced chipsets called GPUs, which serve as the core architectures on which AI models are trained and inferenced. Micron enters the equation through its high-bandwidth memory (HBM) solutions, which essentially help keep GPUs running at optimal speeds and help prevent bottlenecks during data workload processing.
Outside of data centers, Micron's DRAM and NAND products power applications across Internet of Things (IoT) devices such as smartphones and gaming PCs, as well as cloud infrastructure and more industrial applications such as autonomous automotive systems and robotics.
According to data compiled by Bloomberg Intelligence, the total addressable market for HBM was estimated to be worth $4 billion in 2023. This figure is expected to grow at a 42% compound annual growth rate through 2033, reaching approximately $130 billion by the early 2030s.
Despite this rapid acceleration, the HBM market remains highly concentrated. Only a few companies such as Micron, Samsung, and SK Hynix are producing HBM solutions at global scale. While competition is intense, I see this industry concentration as the foundation of Micron's high strategic market value.