Micron Technology pledged up to $3 billion to fortify the U.S. semiconductor supply chain, including a $500 million strategic investment in GlobalWafers’ Texas wafer fab and a planned 10-year supply agreement. The announcement drove a 6% pre-market stock surge, supported by analyst upgrades — Bank of America’s Vivek Arya maintains a $1,550 price target, citing $1.5 trillion in projected AI infrastructure spending by 2027, 35–40% of which targets memory. UBS raised its DRAM price forecast to 32% QoQ growth for Q3, reflecting sustained demand.
According to br.tradingview.com, Micron Technology announced plans to invest up to $3 billion to strengthen the U.S. semiconductor supply chain — a move that lifted its stock 6% in pre-market trading on Thursday.
Micron’s $3B U.S. supply chain commitment
The investment aims to expand the domestic semiconductor supply ecosystem and support long-term manufacturing capacity needed for next-generation technology innovation. In its press release, Micron stated:
“This investment reflects Micron’s commitment to ensuring a reliable U.S. supply of critical materials for chip fabrication, reinforcing supply security, improving flexibility in long-term planning, and supporting surging demand for advanced memory and storage solutions driven by artificial intelligence and other data-intensive applications.”
Strategic $500M financing for GlobalWafers in Texas
As part of the initiative, Micron will provide $500 million in strategic financing to GlobalWafers Co., Ltd. to expand its 300mm silicon wafer fabrication facility in Sherman, Texas. The companies also plan to finalize a 10-year supply agreement, guaranteeing Micron access to substantial volumes of raw silicon wafers to underpin its long-term manufacturing roadmap and bolster the U.S. semiconductor manufacturing ecosystem.
The collaboration extends beyond capacity expansion: Micron and GlobalWafers intend to jointly explore next-generation wafer technologies and process innovations to meet evolving semiconductor fabrication requirements.
Market response and analyst outlook
Micron’s shares rose 6% pre-market following the announcement — continuing a broader recovery after South Korean memory chipmakers Samsung and SK Hynix posted gains during Asian trading hours. The rebound comes after Micron’s stock retreated from levels above $1,200 at the end of June amid investor concerns about the sustainability of AI-driven memory demand.
Analyst Vivek Arya of Bank of America reiterated his “buy” recommendation and maintained a price target of $1,550. He projected global cloud and AI infrastructure spending could reach $1.5 trillion by 2027, with 35%–40% allocated to memory components. Arya emphasized that investors are underestimating memory’s shift from a highly cyclical product to a strategic AI infrastructure component.
Upgraded DRAM pricing forecasts reinforce demand confidence
UBS upgraded its outlook for contracted DRAM prices, forecasting a 32% quarter-on-quarter increase for DDR memory in Q3 — up from its prior estimate of 17%. This stronger pricing trajectory supports expectations that memory demand will remain robust as AI infrastructure investments continue, even amid recent sector-wide concerns over AI capex sustainability.
Arya’s $1,550 price target is based on a sum-of-the-parts valuation: it assigns roughly three times book value to Micron’s traditional cyclical memory business (projected for 2028) and applies a 31x price-to-earnings multiple to its high-bandwidth memory segment (also forecast for 2028).
Source: br.tradingview.com
Compiled from international media by the SCI.AI editorial team.
