New York, Jan 20, 2026, 16:10 EST — After-hours
- Micron shares ended 0.9% higher following a choppy session that saw the stock spike above $381 briefly
- The chipmaker will shell out $1.8 billion to acquire Powerchip’s P5 fab site in Taiwan, targeting a boost in DRAM production starting in 2027
- TD Cowen raised its price target for Micron to $450, pointing to worsening memory shortages
Micron Technology’s stock ended Tuesday up 0.9%, closing at $366.00. The price fluctuated sharply during the session, hitting a low of $350.22 before climbing to a high of $381.04, amid investor reaction to a Taiwan expansion agreement and new upward revisions from analysts. Trading volume reached roughly 44.9 million shares.
This shift is crucial because memory—particularly the chips paired with AI processors in data centers—stands out as one of the market’s clearest “tight supply” plays. With supply limited, price changes here tend to impact earnings swiftly in this segment of semiconductors.
That’s why capacity news keeps drawing investor attention. With Micron, it’s not so much if demand is there—it’s who can deliver enough chips quickly without tanking prices.
Micron announced it has signed a letter of intent to acquire Powerchip Semiconductor Manufacturing’s P5 fab in Tongluo, Taiwan, for $1.8 billion in cash. The purchase adds roughly 300,000 square feet of cleanroom space — essential for chip production. The company anticipates boosting DRAM wafer output starting in H2 2027, aiming to close the deal by Q2 2026, subject to regulatory approval. TrendForce estimates the initial phase could represent over 10% of Micron’s global capacity by Q4 2026. (Reuters)
On Tuesday, TD Cowen lifted its price target for Micron to $450 from $300 and maintained a buy rating, citing “memory shortages are worsening, not improving.” The firm’s analysis suggests stronger DRAM and NAND prices heading into the second half of 2026, with potential upside to Micron’s earnings power for that year. (TipRanks)
Stifel analyst Brian Chin raised his price target to $360 from $300 and kept a buy rating following the Taiwan deal. He described the memory market as “favorably tight” and said the firm stays “upbeat” on conditions extending through Micron’s fiscal 2026. (TipRanks)
DRAM serves as the primary working memory in servers and PCs, whereas NAND is the flash memory powering storage devices like solid-state drives. Both sectors can swing dramatically when supply eases, which is why Wall Street keeps a close eye on contract negotiations and “long-term agreements.”
The Taiwan facility alone won’t ease any immediate supply crunch, and the timeline leaves plenty of uncertainty. Regulatory approval is still pending, and doubts are creeping in. Investing.com reported that Aletheia Capital downgraded Micron to hold from buy, citing worries about HBM3E — the latest high-bandwidth memory tech — and concerns over the stock’s valuation compared to its historical price-to-book ratios. (Investing)
Upcoming catalysts are more routine. Traders will look for finalized deal documents or fresh details on the Taiwan transaction, along with early indications that supply contracts are settling at higher prices through the second half of 2026.
Macro factors might come into play. The U.S. personal consumption expenditures (PCE) price index, which the Federal Reserve monitors closely for inflation signals, is scheduled for release on Jan. 22. (Bea)
