Why Did Micron Stock Pop Today?

Micron (NASDAQ: MU) banal took different tumble Tuesday aft The Wall Street Journal reported it volition walk $50 cardinal gathering 2 caller spot factories successful Boise, Idaho.

One time later, investors look to person gotten implicit their freak-out. Shares that slid 3% yesterday are leaping up 6.9% done 11:50 a.m. ET Wednesday, winning backmost each of yesterday's losses -- and more.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

Motivated by unprecedented tightness successful planetary DRAM supply, which is driving the terms of this peculiar spirit of semiconductor spot done the roof, Micron is "rushing to adhd manufacturing capacity," reports the Journal.

Current plans are to walk $50 cardinal to treble Micron's 450-acre Boise campus, including gathering 2 caller 600,000-square-foot factories. The archetypal volition unfastened successful mid-2027, and the 2nd earlier the extremity of 2028. Both volition beryllium enactment to enactment churning retired DRAM chips for High Bandwidth Memory (HBM) successful artificial quality information centers.

At the aforesaid time, the Journal reports Micron is gathering a $100 cardinal mill adjacent Syracuse, NY, and a smaller $9.6 cardinal mill successful Hiroshima, Japan. These and different investments, says the paper, each adhd up to a $200 cardinal effort to "break the AI representation bottleneck."

With DRAM and HBM prices done the roof, it makes consciousness Micron would privation to currency in. There's conscionable 1 problem: Micron doesn't really person $200 billion. According to S&P Global Market Intelligence data, its currency reserves are really person to $10 billion.

Granted, successful today's market, Micron's generating tons of currency flow, much than $22 cardinal earlier accounting for each the superior spending it's doing. That mightiness wage disconnected if DRAM prices enactment high.

If the semiconductor rhythm turns little excessively soon, however, look retired below.

Before you bargain banal successful Micron Technology, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Micron Technology wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $415,256!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,133,904!*