Micron (MU) Expands Manufacturing Footprint as AI Drives Long-Term Memory Demand

Core Viewpoint - Micron Technology, Inc. is positioned as a leading semiconductor stock, with significant investments aimed at expanding its manufacturing capabilities to meet the growing demand for NAND technology driven by AI and data-centric applications [1][2]. Group 1: Investment and Expansion - Micron has initiated a $24 billion investment over 10 years for a new advanced wafer fabrication facility in Singapore, with production expected to start in the second half of 2028 [1][2]. - The new facility will create approximately 1,600 jobs and will enhance Micron's NAND Center of Excellence, supporting future technology transitions and long-term storage demand [2]. Group 2: Market Position and Growth Potential - Stifel has initiated coverage on Micron with an Outperform rating, citing a multi-year upcycle in the memory sector driven by AI demand and supply constraints [3]. - As the second-largest memory supplier, Micron is expected to see significant revenue growth, with high-bandwidth memory (HBM) revenue projected to increase by 164% in fiscal 2026 and 40% in fiscal 2027 [4]. Group 3: Competitive Landscape and Risks - Stifel has identified Samsung as a rising competitor in the HBM market, along with other risks such as elevated capital expenditures and potential shifts in the DRAM supply-demand balance [5]. - Micron's current valuation is approximately 9.7 times expected 2026 earnings, slightly below its historical average, indicating potential investment opportunities [5].