TLDR
- Micron stock surged nearly 8% Friday, reaching an all-time high of $353.08 after Taiwan Semiconductor’s strong earnings report signaled continued AI infrastructure spending
- The company announced plans to acquire Powerchip Semiconductor’s Taiwan fab for $1.8 billion in cash, with the deal expected to close by Q2 2026
- CEO Sanjay Mehrotra confirmed AI-driven memory demand is accelerating, with market tightness expected to continue into 2027
- Memory prices are projected to rise 55% in Q1 due to worldwide shortages driven by AI system requirements
- Micron broke ground on a $100 billion facility in Clay, New York, as part of $200 billion in U.S. production capacity investments
Micron Technology stock climbed nearly 8% on Friday, touching an all-time high of $353.08. The rally came after Taiwan Semiconductor Manufacturing Co. posted strong earnings that pointed to ongoing AI infrastructure investment.
The stock has gained over 250% in the past year. Memory shortages worldwide have fueled the gains as demand from AI systems continues to surge.
CEO Sanjay Mehrotra spoke to CNBC about the company’s momentum. “AI driven-demand is accelerating. It is real. It is here, and we need more and more memory to address that demand,” he said.
Memory plays a critical role in AI systems. It keeps large amounts of data near the graphics processing unit so AI models can run without delays.
The shortage has pushed prices higher. Memory component prices are expected to jump 55% in the first quarter alone.
Micron’s growth exceeded internal projections. At the start of 2025, the company forecast 10% growth for server memory. That number reached high teens by year end.
The company also saw stronger-than-expected growth in PC memory and storage. Mehrotra said the tight market conditions should last through 2027.
Expansion Plans Move Forward
Micron broke ground Friday on a massive facility in Clay, New York. The company plans to invest $100 billion in the 600,000-square-foot fab.
Commerce Secretary Howard Lutnick attended the groundbreaking ceremony. The facility is part of Micron’s broader $200 billion investment to expand U.S. production capacity.
The company is also building two fabrication plants in Idaho. Mehrotra noted it will take several years to complete these facilities, including clean rooms and production equipment.
In the near term, Micron is ramping up chip production at existing facilities. The company needs to meet growing orders from customers like Nvidia, Advanced Micro Devices, and Google.
Taiwan Acquisition Adds Capacity
Micron signed an exclusive Letter of Intent to buy Powerchip Semiconductor Manufacturing Corporation’s P5 fabrication site in Tongluo, Taiwan. The deal is valued at $1.8 billion in cash.
The acquisition includes a 300,000-square-foot 300mm fab cleanroom. The site sits near Micron’s existing Taichung facility, creating operational synergies.
Manish Bhatia, executive vice president of global operations, called it a strategic move. “This strategic acquisition of an existing cleanroom complements our current Taiwan operations and will enable Micron to increase production and better serve our customers in a market where demand continues to outpace supply,” he said.
The deal should close by the second quarter of 2026, pending final agreements and regulatory approvals. Micron will take ownership and control of the P5 site to equip and ramp up DRAM production in phases.
PSMC will relocate its operations over a specified timeframe. The agreement also establishes a long-term relationship between the companies for post-wafer assembly processing.
Micron expects the Taiwan fab to contribute meaningful DRAM wafer output starting in the second half of 2027. The company has 22 analysts who recently revised earnings estimates upward, with revenue growth of 45.43% in the last twelve months.
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