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

Micron Technology, Inc. (NASDAQ:MU) is among Goldman Sachs’ top semiconductor stock picks. On January 27, Micron Technology, Inc. (NASDAQ:MU) broke ground on a new advanced wafer fabrication facility at its existing NAND manufacturing complex in Singapore. The project represents a planned investment of about $24 billion over 10 years. Wafer production is expected to begin in the second half of 2028. The new fab is intended to support growing demand for NAND technology driven by AI and data-centric applications.

The double-story facility will become part of Micron’s NAND Center of Excellence in Singapore. It will support future technology transitions and long-term storage demand. The investment is expected to create around 1,600 jobs. It will also complement Micron’s nearby HBM advanced packaging facility, strengthening manufacturing synergies. The fab will follow Micron’s sustainability standards and support workforce development and innovation in Singapore.

On January 22, Stifel initiated coverage on Micron Technology, Inc. with an Outperform rating. Stifel based this initiation on the belief that the memory sector is entering a multi-year upcycle driven by AI demand and supply constraints, and that memory is becoming a critical bottleneck in AI systems.

The firm noted that as the second-largest memory supplier, Micron is positioned to benefit significantly. Stifel expects the company’s high-bandwidth memory (HBM) revenue to grow by 164% in fiscal 2026 and 40% in fiscal 2027. It also noted advantages for DDR and QLC NAND from AI trends.

But Stifel identified several risks, the key one being that Samsung is emerging as a more formidable HBM competitor. Others include elevated capital expenditures shifting value to equipment suppliers, and potential loosening of dynamic random-access memory (DRAM) supply-demand balance.

On valuation, the firm observed that Micron trades at approximately 9.7 times expected 2026 earnings, slightly below its historical average.

Micron Technology, Inc. (NASDAQ:MU) is a semiconductor company. It manufactures memory and storage products, including DRAM, NAND flash, and solid-state drives used in data centers, personal computers, mobile devices, and automotive systems.

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Disclosure: None. This article is originally published at Insider Monkey.