Micron Technology Announces $100 Billion Factory to Address Chip Shortage
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Chip Shortage Intensifies: Micron's executive stated that the memory chip shortage has accelerated over the past quarter and is expected to last until 2026 due to surging demand for high-end semiconductors required for AI infrastructure, creating supply constraints in the traditional smartphone and PC markets.
- Major Investment Plan: Micron broke ground on a $100 billion production site outside Syracuse, New York, with plans to start meaningful DRAM wafer output in the second half of 2027, significantly enhancing its competitive position in the global memory market.
- Market Demand Shift: As smartphone manufacturers like Xiaomi and Oppo cut their shipment targets for 2026 due to rising memory costs, global smartphone shipments are projected to decline by 2.1%, which will further impact production capabilities for PC makers like Dell.
- Strategic Transformation: Micron's decision to end its popular Crucial-branded consumer memory business to prioritize supply for strategic enterprise customers, including Nvidia, underscores its strong focus on the AI industry's insatiable demand for memory chips.
Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 336.630
Low
235.00
Averages
336.12
High
500.00
Current: 336.630
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
