Micron Technology has unveiled the largest manufacturing expansion in its history, committing more than $250 billion to US chip production through 2035. The figure, a $50 billion increase over its previous pledge, signals an aggressive bet on America’s ability to anchor the global memory supply chain. Yet the announcement landed on a day when the market’s attention was split — a rival’s blockbuster New York listing pulled capital away and briefly dragged Micron’s stock lower.
The centrepiece of the plan is a new DRAM fabrication plant in Clay, New York, where Micron poured its first concrete more than a quarter ahead of schedule. The company aims to base roughly 40% of worldwide DRAM output in the US, a project it says will generate more than 90,000 jobs. Additional facilities in Boise, Idaho, are due to come online by mid-2027 and late-2028. To fortify the domestic supply chain, Micron is also setting aside up to $3 billion, including a $500 million strategic investment in GlobalWafers’ 300-millimetre wafer plant in Sherman, Texas, backed by a ten-year supply agreement.
The timing of the announcement was deliberate. On the same day, SK Hynix launched the largest foreign IPO in US history, a $26.5 billion offering that was more than seven times oversubscribed. The South Korean memory maker’s shares opened at $170, a 14% premium to the $149 offer price, and its forward price-to-earnings multiple of roughly 5.8 looked cheap next to Micron’s 7.0. The immediate effect was a rotation out of Micron: the stock initially rose as much as 9.1% to $1,035.50 on the investment news but closed up 4.5%, then slipped in pre-market trading the following session by as much as 3.2%. By the close of that week, the shares had trimmed the week’s loss to 5.07%, hovering near €865.80 — almost flat from the prior day.
The distraction from SK Hynix masks a broader narrative that is quietly reshaping Micron’s customer base. In the first week of July, the company signed multi-year supply agreements with both General Motors and Ford, locking in high-performance memory for next-generation vehicle platforms. The move into automotive marks a strategic diversification beyond the data-centre and PC markets that have long dominated its revenue. Management has also confirmed that its High Bandwidth Memory capacity is effectively sold out through 2027, a constraint that underpins the rationale for the multibillion-dollar build-out.
Should investors sell immediately? Or is it worth buying Micron?
Industry data bolsters that confidence. UBS reported that global memory-chip sales hit a record $74.6 billion in July, a 31.7% month-on-month surge, driven by accelerating AI demand and ongoing negotiations over long-term supply contracts. Analysts see the momentum as structural rather than cyclical. TD Cowen’s Krish Sankar reiterated a buy rating with a $1,600 price target, noting that DDR pricing rose more than 15% in the fiscal third quarter and that HBM prices are expected to more than double by 2027. BofA’s Vivek Arya also maintained a buy with a $1,550 target, while Morgan Stanley’s Shawn Kim described the recent pullback as a “necessary revaluation”.
The earnings backdrop explains the optimism. In Micron’s fiscal third quarter, revenue surged 346% to $41.46 billion and earnings per share jumped more than twelvefold to $25.11, pushing gross margins to roughly 85%. The company has guided for $50 billion in revenue next quarter with margins of 86%. Of 30 analysts tracked by TipRanks, 29 rate the stock a buy and only one a hold, with an average price target of $1,563.93.
Despite the strong fundamentals, technical indicators reflect the recent volatility. The stock sits 21.56% below its 52-week high of €1,103.80, reached on 25 June 2026, while still trading comfortably above both its 50-day moving average of €803.48 and its 200-day average of €409.22. The relative strength index of 49.4 points to a neutral stance, yet the annualised 30-day volatility of 109.52% underscores how sharply the shares can swing. Since the start of the year, the stock has still gained 221.86%; over twelve months the advance stands at 722.53%.
The juxtaposition between a sold-out product pipeline, surging margins and a stock that has fallen roughly 22% from its peak highlights the market’s unease with the scale of capital expenditure. With SK Hynix now offering a cheaper entry point into the AI memory boom and US Commerce Secretary Howard Lutnick publicly pressing Samsung and SK Hynix to build more American factories, Micron finds itself competing on two fronts — one for customers, the other for investor attention.
Ad
Micron Stock: Buy or Sell?! New Micron Analysis from July 10 delivers the answer:
The latest Micron figures speak for themselves: Urgent action needed for Micron investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from July 10.
Micron: Buy or sell? Read more here...
