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Micron Surges on AI Memory Demand, Breaks Ground on $100 Billion N.Y. Fab, Signs LOI for $1.8 Billion Taiwan Site

Micron flags AI workloads straining memory supply into 2027, reinforcing a multiyear capacity buildout.

Overview

  • Shares jumped nearly 8% on Friday to an all‑time high around $353 after TSMC’s results and CEO Sanjay Mehrotra’s comments on accelerating demand.
  • The company started construction on a 600,000‑square‑foot facility in Clay, New York with a planned $100 billion investment as part of a broader $200 billion U.S. expansion that also includes two Idaho fabs.
  • Micron signed an exclusive letter of intent to buy Powerchip Semiconductor’s P5 fab in Taiwan for $1.8 billion in cash, with closing targeted by Q2 2026 pending agreements and approvals and initial DRAM output expected in the second half of 2027.
  • Management is boosting output at existing plants to meet orders from customers such as Nvidia, AMD, and Google, while warning new fabs will take years to equip and qualify.
  • Analysts raised targets—Citi to $385 and RBC to $425—as research firms project DRAM and HBM prices to rise roughly 40% to 55% in early 2026 on persistent supply tightness.