Micron (MU) Stock Jumps 8% as $20B U.S. Fab Expansion Targets AI Memory Boom
Micron Technology shares surged nearly 8% on January 16 after CEO Sanjay Mehrotra highlighted sustained AI-driven memory demand and projected tight global supply through 2027. The rally reflects investor confidence in the company's aggressive $20 billion U.S. expansion plan, targeting AI and cloud infrastructure growth.
New fabrication plants in Idaho and New York will address critical shortages as memory prices are projected to jump 55%. The Clay, New York facility alone will see $10 billion in initial investment, with potential for hundreds of billions in future capacity scaling.
Market Optimism centers on Micron's positioning to capitalize on data-center buildouts and advanced AI models. The memory chip maker stands to benefit from hyperscale and enterprise server upgrades driving structural demand across cloud computing and high-performance storage markets.
