Micron Technology Commits $200 Billion to Expand Production for AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Surging Market Demand: Micron Technology's DRAM and HBM products are in high demand due to the limited number of global suppliers, resulting in record high revenues and the entire 2026 HBM supply already sold out, indicating strong market demand and sales capability.
- Capacity Expansion Plans: Micron plans to invest over $200 billion in the coming years to expand its U.S. manufacturing capacity by upgrading its existing Virginia facility and opening two new fabrication plants in Idaho and New York, significantly boosting production to meet the growing AI market needs.
- Acquisition Intent: Micron has signed a letter of intent to acquire a Taiwanese semiconductor fabrication site for $1.8 billion, which will further enhance its competitiveness in the global semiconductor market and support future production capacity.
- Reasonable Valuation: Despite a significant stock price increase in 2025 due to its established position in the AI ecosystem, Micron's valuation remains reasonable at 5.5 times forward sales and 11 times forward earnings, highlighting its potential as a key player in an AI-driven future.
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: 397.580
Low
235.00
Averages
336.12
High
500.00
Current: 397.580
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.
