New York, January 21, 2026, 09:42 EST — The regular session is now underway.
- Micron shares jumped early Wednesday, boosted by news of a Taiwan capacity deal and persistent chatter about tight memory supply.
- Significant DRAM wafer production at the acquired plant is set to begin in the latter half of 2027.
- Analysts ramped up their coverage of MU over the past day, issuing multiple target price hikes alongside at least one downgrade tied to HBM execution.
Micron Technology, Inc. saw its shares climb 2.8% to $375.21 by 9:39 a.m. EST Wednesday. The surge followed two days of investor attention on the company’s strategy to boost manufacturing capacity in Taiwan despite soft demand for AI memory chips. 1
Memory shortages are snarling efforts by big cloud and chip customers scrambling to expand AI infrastructure. When supply tightens, contract prices spike sharply, hitting Micron’s earnings right away.
The timing is favorable for bulls. Micron is acquiring more “cleanroom” space—the controlled environment needed for chip tools—but any significant increase in output won’t materialize for a while. That means the near-term supply picture stays largely the same.
Micron has signed a letter of intent to acquire Powerchip Semiconductor Manufacturing’s P5 fab in Tongluo, Taiwan, for $1.8 billion in cash. The deal brings about 300,000 square feet of cleanroom space to Micron’s portfolio. The company expects to close the transaction by Q2 2026, subject to regulatory approval, with DRAM wafer production slated to begin in the second half of 2027. TrendForce projects that the initial 2027 output will account for more than 10% of Micron’s global capacity as of Q4 2026. 2
Micron’s operations chief Manish Bhatia called the current shortage “unprecedented.” 3
DRAM, or dynamic random access memory, acts as the main “working” memory in PCs and servers. NAND is flash memory used in storage devices like solid-state drives.
High-bandwidth memory, or HBM, is stacked DRAM designed to accelerate data transfer alongside AI processors. This segment remains fiercely competitive. Micron is battling larger rivals aiming at the same AI supply chains.
Stifel’s Brian Chin raised his price target for Micron to $360 from $300, keeping a Buy rating intact. He remains “upbeat” about tight supply extending through and beyond fiscal 2026. TD Cowen also hiked its target sharply, lifting it to $450 from $300. In a note shared by TheFly, Cowen said shortages are “worsening, not improving.” 4
But it’s not all good news. Warren Lau at Aletheia downgraded Micron from Buy to Hold, cautioning that the company could face a slow road to improving performance and “regain confidence” in its high-bandwidth memory offering. 5
Beyond what analysts are saying, the calendar itself clouds the outlook: Taiwan’s expansion still needs the green light, and memory markets have often seen sharp moves when supply runs ahead of demand. If AI server spending slows, the high-end memory products—already in tight supply—could take a serious hit.
Investors are watching Taiwan’s ramp schedule intently, looking to confirm whether customer contracts will keep pushing into 2026, as both management and analysts suggest. Pricing trends in the broader memory sector remain a crucial factor that could swiftly change market sentiment.
Next up on the calendar: earnings. Micron is set to release results between March 18 and 23. Investors will zero in on any updates to pricing, HBM shipments, and potential changes to the 2027 target for the Taiwan plant’s production schedule. 6
