On January 20, Micron Technology shares climbed 0.8% even as the S&P 500 dropped 2.1% and the Nasdaq Composite lost 2.4%. Early in the session, Micron’s gains peaked at 5.2%, reflecting investor appetite for its memory-chip franchises. Stifel maintained a Buy rating while raising its one-year price target from $300 to $360, highlighting the company’s recent acquisition of Powerchip’s Tongluo fab and ongoing supply constraints. TD Cowen likewise reiterated a Buy rating and boosted its target from $300 to $450, citing expectations for “explosive earnings growth” driven by surging AI-related demand for high-bandwidth memory.

Micron’s $1.8 billion deal to acquire Powerchip Semiconductor’s P5 fabrication site in Taiwan represents a critical step to alleviate capacity bottlenecks. With demand outstripping supply across DRAM and NAND markets, the new facility is expected to come online by 2027 and immediately bolster wafer output. CEO Sanjay Mehrotra emphasized the company’s focus on ramping production to capture what he described at Davos as “an unprecedented shortage” of memory chips needed by leading AI infrastructure providers.

In its fiscal first quarter, Micron reported revenue growth of 57% year-over-year and adjusted EPS of $4.78, up 170% from the prior year, as gross margins expanded to 56.8% from 39.5%. Booking is already sold out for the balance of the year, prompting management to raise full-year capital expenditures from $18 billion to $20 billion. The company forecasts the high-bandwidth memory market will grow at a 40% compound annual rate through 2028, driving record free cash flow and positioning Micron to remain net cash positive while funding rapid capacity additions in New York and Idaho.