Micron Technology (NASDAQ: MU) has increased its 2024 capital expenditure forecast, showing a bigger push into high bandwidth memory (HBM) chips to meet the growing needs of the AI industry.

This move is important because Micron is a big provider of HBM chips, which are a key part of the hardware used in AI servers. Micron’s new HBM3E technology is going to be used in Nvidia’s H200 chips, making Micron an important player in the AI chip industry.

In March, Micron said that it had already sold out of its HBM chips for 2024 and that most of its 2025 supply was already taken.

Micron currently makes HBM chips with eight layers, and it has started showing off its twelve-layer chips to clients.

In terms of numbers, Micron’s capital expenditure forecast for 2024 has been increased to about $8 billion, up from the previous estimate of $7.5 billion, according to CFO Matt Murphy.

Chief Operating Officer Manish Bhatia said that the company is excited about its future, and he thinks that HBM will be a multibillion-dollar opportunity for Micron in fiscal 2025. Bhatia made these comments at the J.P. Morgan Technology, Media, and Communications Conference.

Even though Micron has a bright future, its stock went down 3% on Monday because the overall market was down. Still, Micron’s stock hit a record high in March and has gone up 51% since the beginning of the year, as of the close of trading on Monday.