Micron Pours Concrete in New York and Cash Into Texas as AI Memory Demand Locks In
Published on 07/10/2026 at 10:33 | Redaktion boerse-global.de
Micron Technology has fired off a two-pronged offensive in its drive to bring chip production back to the US, breaking ground on a massive New York fab well ahead of schedule while simultaneously funnelling $3 billion into its domestic supply chain. The memory specialist poured the first concrete for its "megafab" in Clay, New York on July 9, more than a quarter earlier than originally planned, and will support the construction of up to four large-scale facilities at the site long term. In a parallel move, the company is injecting $500 million of that supply-chain fund into GlobalWafers to expand a Texas wafer plant, with a ten-year supply agreement for 300-millimetre wafers already signed.
The investments come against a backdrop of staggering demand. Micron’s fiscal third quarter ended May 28 delivered $41.5 billion in revenue, a 346% leap from a year earlier as the data-centre boom — now responsible for over half of total memory demand — turbocharged sales. The data-centre segment alone posted a gross margin of 87%, while the company’s high-bandwidth memory (HBM) capacity is completely sold out for the remainder of calendar 2026. Looking ahead, Micron guided for fiscal fourth-quarter revenue of roughly $50 billion with a gross margin in the vicinity of 86%, and has already locked in about 40% of future sales through long-term customer contracts, some stretching to 2030.
The stock’s reaction, however, has been anything but linear. On the day the GlobalWafers pact was announced, shares surged as much as 6% to close at €867.20, riding a broader sector rally that also lifted AMD and Intel. But the gains didn’t hold: subsequent sessions saw the stock slide, with the price dipping to €847.80 — a decline of 2.24% on the last reporting day — and putting the seven-day performance into negative territory. That pullback leaves the equity roughly 23% below its 52-week high of €1,103.80 reached on June 25, even though it remains up over 200% year to date and more than 107% above its 200-day moving average of €409.13.
Should investors sell immediately? Or is it worth buying Micron?
Micron’s long-term ambition is anchored in the CHIPS and Science Act and roughly $5.5 billion in state incentives from New York. The company aims to repatriate 40% of its global DRAM production to the US by 2035, a move CEO Sanjay Mehrotra describes as a response to “unprecedented” demand fueled by artificial intelligence. The New York facility alone is expected to create 9,000 direct and 40,000 indirect jobs, while the broader US projects are projected to generate more than 90,000 positions in total. In Idaho, Micron’s first wafer production at its Boise site is slated for mid-2027, and its Virginia plant is already turning out 1-alpha DDR4 memory.
Industry observers expect the memory tightness to persist at least through 2027, driven by the insatiable appetite of AI data centres. Micron’s move to cement its wafer supply early — starting with the GlobalWafers’ Texas expansion supported by $500 million — is widely seen as an attempt to insulate itself against the very bottlenecks that are sending memory prices soaring. The wafer plant in Sherman, Texas will also serve the broader US ecosystem, earning praise from Commerce Secretary Howard Lutnick for strengthening a critical sector.
While the stock’s volatility has tested investor patience, the fundamental picture remains robust. The revenue run-rate has nearly tripled year-on-year, and Micron’s forward guidance suggests no let-up. The sell-off from the June peak may simply reflect profit-taking in a market already pricing in a stellar run, but the company’s sold-out HBM pipeline and long-term contracts offer a buffer against demand shifts. For now, Micron’s bet is that building American factories at warp speed is the only way to keep feeding the AI beast.
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