Micron stock (NASDAQ: MU) surged more than 4% on Monday as investors continued to price in optimism around the company’s recently announced $24 billion Singapore capacity expansion.
The market reaction reflects investor confidence that supply constraints will persist through the remainder of 2027.
The dynamic ensures sustained pricing power on memory chips as artificial intelligence deployment accelerates globally.
The move signals Micron’s conviction that demand for storage and processor memory will outpace available supply for years, justifying massive capital bets now.
The company said the advanced wafer fabrication facility will be built at its existing NAND complex in Singapore, featuring a double-story design with roughly 700,000 square feet of cleanroom space.
Wafer production is scheduled to commence in the second half of 2028, a deliberate multi-year timeline that matters.
The facility represents part of a broader $31 billion Singapore commitment that also includes a $7 billion high-bandwidth memory (HBM) advanced packaging plant due online in 2027.
Micron stock: Wall Street prices in supply relief
Micron stock jumped about 6% when the expansion news first hit, and the rally picked up steam as analysts weighed in.
The memory giant is up roughly 360% over the past 12 months, and trading activity has been heavy, with intraday volume topping 30 million shares as institutional investors repositioned ahead of the company’s fiscal-year outlook.
Wall Street’s tone has stayed upbeat.
Rosenblatt analyst Kevin Cassidy reiterated a $500 price target, saying demand is likely to stay ahead of supply through at least 2027.
Mizuho lifted its target to $480 from $390, citing expectations that no new NAND wafer capacity will be added in 2026 or 2027, even as NAND demand grows more than 20% annually.
Bank of America and Barclays also maintained buy ratings, with price targets of $400 and $450, respectively, arguing the stock still looks fairly valued despite a roughly 361% gain year to date.
Capacity, timeline, and execution risk
Micron’s timing on its Singapore expansion doesn’t look accidental.
Wafer production isn’t expected to start until late 2028, but investors see that long lead time as a clear signal that the company expects memory supply to stay tight long enough to make the investment worthwhile.
That view is getting support from what competitors are doing.
Samsung and SK Hynix have been far more cautious with new capacity, and that restraint could give Micron room to hold onto pricing power through 2027 while supply remains limited.
The confidence shows up in Micron’s spending plans.
In December, the company lifted its fiscal 2026 capital spending forecast to $20 billion from $18 billion and kept in place an additional $7 billion investment tied to its high-bandwidth memory facility.
That’s a big jump from the $13.8 billion it spent the year before and points to capital intensity nearing 40% of sales, a level that only works if demand and pricing stay strong.
Still, the risks are real. New chip fabs take years to run at full efficiency, and any cooling in AI spending or faster capacity additions from rivals could squeeze margins.
On top of that, geopolitical uncertainty around Asian supply chains could complicate timelines.
For now, though, the market seems comfortable betting on strong AI demand, solid pricing through 2027, and clean execution of Micron’s Singapore buildout.
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