Micron Stock Pops 11% on CoreWeave's AI Spending Spree

Micron Technology (MU) stock jumped 11.6% on Wednesday morning after AI cloud provider CoreWeave (CRWV) reported better-than-expected third-quarter earnings Tuesday night. CoreWeave lost $1.27 per share, less than feared, and generated $3.66 billion in revenue, topping estimates. The company also raised its full-year 2026 revenue guidance to $13.0–$13.3 billion and promised capital investments of $37–$39 billion, significantly higher than expected.

CoreWeave's capital expenditure plans are the key driver for Micron. As an AI data center operator, CoreWeave needs massive amounts of memory chips to build and expand its infrastructure. The more it spends on capex, the more memory chips it buys from suppliers like Micron. This creates a direct, bullish signal for Micron's future revenue.

Investors were also encouraged by CoreWeave's improving financial health. The company expects to exit 2026 with an annual revenue run rate of $20–$21 billion and to achieve adjusted profitability by early 2028. This means CoreWeave will have more cash to continue buying chips, reinforcing long-term demand for Micron's products.

Micron shares are up 11.6% as of 10:35 a.m. ET, while CoreWeave stock surged 21.5%. The positive read-through also lifted Sandisk, which rose 11%.

Micron is a leading supplier of memory chips used in AI data centers, and CoreWeave's aggressive spending plans confirm that demand for AI infrastructure remains robust. The raised capex guidance from CoreWeave suggests that the AI buildout is not slowing down, which bodes well for Micron's revenue growth in the coming years.

Moreover, CoreWeave's path to profitability by 2028 reduces the risk of a sudden pullback in spending. A financially healthy customer is more likely to sustain and even increase orders, providing Micron with a stable and growing revenue stream. This is particularly important as Micron transitions to higher-margin products like high-bandwidth memory (HBM) for AI applications.

At less than 10 times trailing earnings, Micron's valuation appears attractive relative to its growth prospects. The stock has been volatile due to cyclical memory industry dynamics, but the secular AI trend could drive a re-rating. If CoreWeave's spending is a proxy for the broader AI data center market, Micron could see sustained demand for its chips, supporting earnings growth.

However, investors should note that Micron's business is still cyclical, and any slowdown in AI spending could impact results. But for now, the CoreWeave news reinforces the bullish case for Micron as a key enabler of the AI revolution.