Why Did Micron Stock Pop Today?

Core Viewpoint - Micron Technology is investing $50 billion to expand its manufacturing capacity in Boise, Idaho, amid a significant increase in global DRAM prices, which is driving demand for semiconductor chips [1][2][3]. Group 1: Investment Plans - Micron plans to double its 450-acre Boise campus by constructing two new factories, each covering 600,000 square feet, with the first factory expected to open in mid-2027 and the second by the end of 2028 [3]. - In addition to the Boise expansion, Micron is also building a $100 billion factory near Syracuse, NY, and a $9.6 billion factory in Hiroshima, Japan, contributing to a total investment of $200 billion aimed at addressing the AI memory bottleneck [4]. Group 2: Financial Position - Despite the ambitious $200 billion investment plan, Micron's cash reserves are only around $10 billion, raising concerns about its ability to fund such extensive projects [4]. - Currently, Micron is generating substantial cash flow, exceeding $22 billion before accounting for capital expenditures, which could be beneficial if DRAM prices remain high [5]. Group 3: Market Reaction - Following the announcement of the $50 billion investment, Micron's stock initially dropped by 3% but rebounded with a 6.9% increase the following day, recovering all losses [1].