New York, January 27, 2026, 16:03 EST — After-hours
- Micron shares jumped roughly 5% on Tuesday, closing close to $410
- The company has broken ground on a NAND wafer fab in Singapore, with production expected to start in 2028
- Traders await updates on memory pricing and spending as the next earnings season approaches
Shares of Micron Technology Inc jumped 5.3% to close at $409.86 on Tuesday after the company announced plans to pour about $24 billion into expanding its manufacturing footprint in Singapore over the next decade. “Micron’s leadership in advanced memory and storage is enabling the AI-driven transformation reshaping the global economy,” said Manish Bhatia, the company’s executive vice president of global operations. Trading ranged from $400 to $416.40, with roughly 30 million shares changing hands. (Micron Technology)
This shift is significant as memory takes center stage in the AI expansion. AI model servers demand increased DRAM—the primary working memory in computers—and more NAND, the flash storage found in devices such as solid-state drives.
Investors view capacity plans as a key indicator of pricing power. Since new fabs take years to come online, any hint of supply discipline can move the sector sharply, even if the additional output is still years away.
Reuters reported that Micron produces 98% of its flash memory chips in Singapore and is investing $7 billion in a packaging plant for high-bandwidth memory (HBM), the stacked memory used with AI processors, set to begin production in 2027. TrendForce analyst Bryan Ao warned that contract prices for enterprise SSDs — the data-storage drives powering servers — could jump 55% to 60%. He added, “The market’s demand for high-performance storage equipment has been growing much faster than expected.” Meanwhile, rivals Samsung and SK Hynix are moving forward with new production lines. Micron also revealed last week it’s in talks to acquire a Powerchip fabrication site in Taiwan for $1.8 billion. (Reuters)
Analysts piled on as the stock climbed. Vijay Rakesh of Mizuho lifted his price target on Micron to $480 from $390, per a Motley Fool piece featured on Nasdaq.com. (Nasdaq)
The bigger question: how long will the memory squeeze hold, and who will blink first? If rivals ramp up capacity aggressively, this tight market could shift fast — memory’s track record shows that happens often.
Timing poses another risk. The Singapore wafer fab targets output in 2028, but delays, cost overruns, or a dip in AI data-center demand could force Micron to invest amid weaker prices.
Traders are eyeing any updates on spending pace and customer contracts. They’ll also be looking to see if other chipmakers follow with similar large-scale builds. Enterprise storage pricing shifts will offer important clues, too.
Micron hasn’t set a firm date for its earnings release, but MarketBeat projects it will report after the market closes on March 19. Investors will focus on any updates about pricing and capital expenditure plans. (MarketBeat)
