Micron Technology (MU) Announces $100B Manufacturing Complex Amid Intensifying Global Memory Chip Shortage
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Memory Shortage Intensifies: Micron's executive stated that the global memory chip shortage has worsened over the past quarter and is expected to last until 2026, primarily driven by surging demand for advanced semiconductors in AI infrastructure, putting pressure on smartphone and PC manufacturers for supply.
- Strategic Customer Focus: To prioritize strategic enterprise customers like Nvidia, Micron announced its exit from the Crucial-branded consumer memory business, further solidifying its market position in the AI sector.
- Acquisition Plans: Micron plans to acquire a chip fabrication site in Taiwan from Powerchip Semiconductor Manufacturing Corporation for $1.8 billion, expected to significantly boost DRAM wafer output starting in the second half of 2027, supporting its technology transition in the Asia-Pacific region.
- U.S. Investment Expansion: Last year, Micron announced plans to invest approximately $150 billion in domestic memory manufacturing in the U.S. and aims to create 90,000 direct and indirect jobs through multiple high-volume fabs in Idaho and New York to meet market demand and achieve its goal of producing 40% of its DRAM in the U.S.
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.
