New York, Jan 21, 2026, 10:38 AM EST — Regular session
- Micron shares jumped roughly 5% in early trading following an analyst’s upgrade on expectations of tighter memory supply
- A $1.8 billion deal to acquire a Taiwan fab targets boosting DRAM production starting in 2027
- Traders balance a prolonged upcycle with the risks tied to execution and the market’s past bouts of sudden reversals
Micron Technology shares climbed 4.9% to $382.86 Wednesday morning, pushing higher amid growing bets that memory supply shortages will persist longer than anticipated. (Investing.com)
This shift is crucial now as memory, usually a straightforward commodity, faces conflicting demands. Data centers expanding AI setups push for premium chips, while phone, PC, and other device manufacturers stick to standard components.
Micron occupies a middle ground. It sells DRAM (dynamic random access memory, the “working” memory inside servers and devices) and NAND flash, while pushing to scale up high-bandwidth memory, or HBM — stacked DRAM designed to work with AI processors.
TD Cowen bumped its price target on Micron to $450 from $300, maintaining a buy rating. The firm cited “worsening” shortages and expects more multi-year supply agreements ahead. It also noted server memory prices might remain high through the latter half of 2026. (Investing.com)
Micron is also gaining momentum by accelerating capacity expansion through acquisition rather than building new facilities. The company signed a letter of intent to acquire Powerchip Semiconductor Manufacturing’s P5 fab in Tongluo, Taiwan, for $1.8 billion in cash. This deal adds roughly 300,000 square feet of cleanroom space, with Micron targeting significant DRAM wafer production starting in the latter half of 2027, the company said. (Reuters)
Micron ranks among the top three HBM suppliers, sharing the stage with Samsung Electronics and SK Hynix. Investors see this as a rare spot in a market where demand has consistently outstripped supply, according to the Reuters report. (Reuters)
Still, the wager isn’t one-sided. Barron’s pointed out that a fresh surge of supply later this decade could stir up a familiar headache: oversupply. That risk looms even if the short-term market remains tight.
After the recent rally, some analysts are growing more cautious on Micron. Warren Lau of Aletheia downgraded the stock from buy to hold, noting it may take a while for the company to “improve and regain confidence” in its high-bandwidth memory products. (TipRanks)
Powerchip could offer the next clue on the Taiwan deal. The company announced an April 10 meeting to talk over a share issuance linked to a planned GDR sale, just days after revealing the Micron letter of intent. (Focustaiwan)
