Chip Stocks Rally on Supply Constraints as Micron Breaks Ground on $200B NY Facility
Micron Technology's 7.76% Friday surge epitomizes the semiconductor sector's AI-driven momentum. CEO Sanjay Mehrotra confirms accelerating memory demand, with CHIPS Act-funded expansion plans including a 600,000-square-foot New York fab—though production remains years away.
Western Digital, Seagate, and Sandisk join Micron in benefiting from what Jim Cramer calls a 'perfect storm': equipment shortages preventing rapid production scaling. The shortage persists despite Nvidia's earlier warnings, creating sustained tailwinds for memory stocks.
Market resilience continues as the S&P 500, Dow Jones, and Nasdaq maintain upward trajectories through 2026, undeterred by geopolitical tensions. Micron's $200 billion domestic investment signals long-term confidence in AI infrastructure demand.