Micron Technology, Inc. (NASDAQ:MU) dipped around 1% on Wednesday after executives hinted at upcoming increases in capital spending during a discussion at RBC Capital Markets’ 2025 Global Technology conference.
Speaking at the event in New York, CEO Sanjay Mehrotra said the company’s current annual capex pace of roughly $18 billion could come under “pressure” amid expectations of continued tight supply conditions through 2026 and obligations tied to multi-year customer agreements.
Chief Technical Officer Scott DeBoer struck an upbeat tone on Micron’s technology roadmap, saying the company is in the “strongest position in history” thanks to solid yield performance on its gamma node and a series of product ramps slated over the next two years.
Even with the technological momentum, investors were uneasy about the potential for heavier capital requirements. Mehrotra reiterated that the long-term customer contracts offer enhanced visibility, but noted that while Micron remains “extremely disciplined” on investment decisions, rising spending appears unavoidable.
On the product side, DeBoer highlighted Micron’s advancement in 3D DRAM, pointed to robust growth in data-center SSDs over the past year, and said the company is leading the industry on PCI Gen 6 for the first time.
Mehrotra also said second-quarter margins are expected to top those of the first quarter. He confirmed that HBM4 shipments will begin in Q2, with a production ramp in the back half of the year, while declining to specify when the new memory will surpass HBM-3e in volume.
Financially, the CEO cited a “significant increase in cash flow” and improving market conditions. He added that the company’s debt situation “has calmed down” and projected Micron will move into a net cash position soon.