New York, Jan 20, 2026, 09:33 EST — Regular session
- Micron shares surged nearly 8% in early trading, driven by investor attention on memory supply.
- The move follows a $1.8 billion plan to buy a Taiwan fab and a new target raise from Stifel.
- Deal approvals and the upcoming earnings report are on traders’ radar for clues about DRAM and HBM.
Micron Technology Inc (Nasdaq: MU) shares surged roughly 7.8% to $362.75 in early New York trading Tuesday, climbing $26.12 from the previous close and briefly touching $362.84. The rally came on the back of Micron’s announcement to expand capacity in Taiwan, coupled with new price-target upgrades from Wall Street analysts.
Memory’s back as a bottleneck, plain and simple. Investors aren’t just betting on growth—they’re pricing in the risk of shortages. The focus is on high-bandwidth memory, the key component for AI servers, since its supply can tighten fast and steer the whole market’s direction.
Micron announced it will acquire Powerchip Semiconductor Manufacturing Corp’s P5 fab in Tongluo, Miaoli County, Taiwan, for $1.8 billion in cash. The deal is expected to finalize by Q2 2026, pending regulatory approval. Micron aims to ramp up DRAM wafer production at the site by the second half of 2027. 1
Stifel’s Brian Chin bumped his price target on Micron to $360 from $300, maintaining a Buy rating following the acquisition news. He said he’s still “upbeat” on the tight memory market well into fiscal 2026. 2
Micron produces DRAM, the primary working memory found in servers and PCs, alongside NAND flash used in storage devices. The company also manufactures high-bandwidth memory (HBM), a stacked DRAM variant designed to sit near AI processors for faster data transfer.
A letter of intent doesn’t seal the deal, but it lays out a clear route to boosting capacity in a sector where new facilities often take years to come online. The cleanroom area at the Taiwan site is key—it’s the controlled environment essential for operating the equipment that manufactures chips.
Still, the benefits won’t show up right away. Capacity hitting in 2027 does little to ease short-term supply concerns, leaving the market vulnerable to any demand fluctuations.
Memory investors know the drill. If major cloud clients cut back spending or competitors ramp up capacity faster than anticipated, prices can drop sharply — and a stock that’s rallied this hard can lose those gains just as quickly.
Micron entered Tuesday riding a solid streak, its shares having climbed roughly 27% in 2026, per Investors.com. That kind of momentum tends to magnify the impact of any news, whether positive or slightly underwhelming. 3
Investors are now zeroing in on the Taiwan deal’s progress — from filings and regulatory hurdles to updates on the closing schedule. They’ll also watch Micron’s upcoming earnings report for clues on pricing and supply control. According to market calendars like Yahoo Finance, Micron’s next earnings call is expected around March 18. 4
