New York, January 20, 2026, 12:20 EST — Regular session
- Micron shares climbed midday following a $1.8 billion purchase of a Taiwan chip plant from Powerchip
- A TD Cowen analyst warned that DRAM and NAND shortages are “worsening, not improving” as demand outpaces supply.
- Attention shifts to deal approvals set for Q2 2026, with Micron’s next quarterly update slated for mid-March
Micron Technology (MU.O) shares climbed roughly 0.6% to $365.02 by midday Tuesday, following its $1.8 billion cash deal to acquire Powerchip Semiconductor Manufacturing’s P5 fab in Taiwan. Earlier, the stock fluctuated between $350.22 and $381.04 during the session. (Reuters)
Micron bucked the broader U.S. equity selloff, gaining ground while the Nasdaq-heavy Invesco QQQ Trust dropped roughly 1.3% and the iShares Semiconductor ETF slipped about 0.3%. TD Cowen’s Krish Sankar told MarketWatch that shortages of DRAM and NAND are “worsening, not improving.” (MarketWatch)
Why it matters now: memory is seen as the critical bottleneck in the AI expansion, with cloud and electronics companies scrambling to lock down supplies that remain scarce no matter the cost. Reuters reported an intense global shortage pushing firms into fierce competition over shrinking stocks of memory chips, driving prices higher. (Reuters)
Micron revealed the Taiwan facility adds 300,000 square feet of cleanroom space—the specialized manufacturing environment for chips—but production won’t ramp up right away. Manish Bhatia, executive vice president of global operations, said the acquisition will allow Micron to “better serve our customers in a market where demand continues to outpace supply.” (Micron Technology)
The focus is on DRAM, dynamic random-access memory that powers working memory in servers and PCs, alongside NAND flash, the data storage medium for devices and data centers. Both are key players in today’s supply crunch.
The Taiwan purchase highlights a subtle bottleneck in the industry: demand alone isn’t enough—space and tooling to produce chips matter just as much. Investors have been quick to back any move that suggests more capacity, as long as it doesn’t trigger an immediate supply glut.
Micron, Samsung Electronics, and SK Hynix lead the pack in high-bandwidth memory (HBM) — stacked DRAM designed to pair with AI processors for rapid data delivery. This sector has turned into a key indicator of which companies are staying competitive in AI-server expansions and which are left behind in outdated, lower-margin areas.
The memory sector remains cyclical. A sudden drop in data-center spending, quicker-than-anticipated capacity expansion, or regulatory hold-ups could swiftly undermine pricing and weigh on stocks that have surged recently.
Traders are closely monitoring any updates on the deal timeline and Micron’s remarks regarding customer supply discussions, particularly around longer-term contracts that secure volume and pricing.
Micron hasn’t announced its next earnings date yet, but MarketBeat projects a report around March 19, after the market closes — a key moment to see if tight supply continues to support pricing power and margins. (Marketbeat)
