As Micron Spends $1.8 Billion on a New Chip Fab Site, Should You Buy MU Stock?

With AI-backed demand being the dominant factor, Micron Technology (MU) stock has surged by 234% in the last 52 weeks. The rally has shown no signs of fatigue, with Micron delivering strong numbers coupled with optimistic guidance. At the same time, the prospects of a shortage of AI memory chips beyond 2026 have kept MU stock firm at higher levels. 

The flow of good news continues for MU stock investors. On Jan. 17, the company announced the acquisition of a chip fabrication site in Taiwan from Powerchip Semiconductor Manufacturing Corporation. The deal is for a total cash consideration of $1.8 billion and includes a “300mm fab cleanroom of 300,000 square feet.”