Shares shifted sharply higher as Micron Technology unveiled an expanded U.S. investment plan exceeding $250 billion through 2035, a massive wager that AI-driven memory demand will keep accelerating long enough to justify one of the largest capital commitments any chipmaker has ever made.

• A $50 Billion Raise on an Already Enormous Bet

The new investment plan represents a jump from the $200 billion that Micron announced last June, which was already increased by $30 billion from its original spending plans.

The announcements mark one of the largest expansions by a U.S. chipmaker, intended to expand domestic memory production capacity, reduce reliance on overseas suppliers, and support a broader ecosystem of U.S.-based chip materials and manufacturing. For shareholders, the signal is clear: management sees demand strong enough to keep deploying capital at an unprecedented pace.

• Record Earnings Give the Spending Plan a Foundation This isn't spending on speculation. Micron's fiscal third-quarter revenue reached $41.46 billion, far higher than the $9.30 billion in the same period last year; non-GAAP EPS was $25.11, up from $1.91 a year ago.

That translates to a 346% year-over-year sales increase with gross margins around 85%.

Management is guiding Q4 revenue to roughly $50 billion , and the company says its high-bandwidth memory capacity is sold out through 2027, with $100 billion in contracted multi-year revenue.

• Securing the Supply Chain Adds Strategic Depth — and Risk

Micron is providing a $500 million strategic loan to wafer supplier GlobalWafers and expects to sign a 10-year supply agreement securing large volumes of silicon wafers.

New long-term take-or-pay contracts — agreements that guarantee payment even if the buyer doesn't use all the chips — already span about a quarter of Micron's revenue and include pricing floors to keep margins above prior peaks. These contracts reduce revenue uncertainty but lock Micron into fixed obligations if demand softens.

• The Valuation Question Wall Street Can't Ignore

Shares rose about 8% in early trading, adding to a more than 200% surge so far this year.

While results show exponential growth, the massive capital expenditure poses long-term risks regarding valuation and supply overcapacity.

Insider activity shows $169.8 million sold in the last three months — a data point worth watching as the stock climbs on optimism that AI demand will remain insatiable indefinitely.