TLDR
- Micron Technology is deploying $200 billion across U.S. manufacturing sites including $50 billion in Boise and $100 billion near Syracuse to address memory chip supply constraints driven by AI data centers.
- The company’s gross profit margins skyrocketed from 18.5% in early 2024 to 56% in Q4 2025, with forecasts reaching 68% this quarter as demand for high-bandwidth memory intensifies.
- MU stock gained 44% in 2026 and jumped over 500% since April 2024 to approximately $414, pushing market capitalization near $500 billion.
- Micron currently fulfills only 50-66% of customer orders, with DRAM prices climbing 170% annually and DDR5 memory costs surging nearly 500% since September.
- All high-bandwidth memory inventory including HBM4 and HBM3e is sold out through December 2026, with industry analysts predicting shortages continuing into 2027.
Micron Technology faces a problem most companies dream about: too much demand.
The memory chip manufacturer is investing $200 billion in U.S. production facilities as artificial intelligence workloads create unprecedented pressure on global supply chains. MU stock climbed 44% year-to-date and trades around $414, giving the company a market value approaching $500 billion.
In Boise, Idaho, construction crews detonate controlled explosions daily to clear bedrock for two new chip fabrication plants. The $50 billion project will more than double Micron’s existing 450-acre campus.
Each factory covers 600,000 square feet. Workers have detonated over 7 million pounds of dynamite preparing the site, with construction teams operating 24/7 from temporary facilities.
The first Boise plant starts producing silicon wafers in mid-2027. Both facilities reach full production by end of 2028, manufacturing DRAM chips used in high-bandwidth memory products essential for AI computing.
Micron also launched a $100 billion fabrication complex near Syracuse, marking New York’s largest private investment in history. The company committed $9.6 billion to a Hiroshima facility last year.
Rivals are expanding aggressively too. SK Hynix announced a $13 billion South Korean plant and $4 billion Indiana site in January. Samsung is ramping production across multiple locations.
AI Transforms Memory Economics
The construction boom traces directly to generative AI’s hunger for memory capacity. Modern language models require exponentially more memory than traditional applications.
Chips designed by Nvidia, AMD, Broadcom and Google depend on faster memory for both training algorithms and running inference queries. Tech giants including OpenAI, Oracle, xAI and Anthropic have unveiled data center plans totaling trillions of dollars.
Scott Gatzemeier oversees Micron’s U.S. expansion after 28 years with the company. “I’ve never seen anything so disruptive as AI,” he said. “The amount of data required just exploded, and we just didn’t have enough clean-room capacity.”
The supply squeeze transformed memory from low-margin commodity to high-value strategic component. MU shares surged over 500% since April 2024 as investors recognized the shift.
Margins Climb Toward GPU Territory
Financial metrics reflect the dramatic change. Micron’s gross margins measured 18.5% in early 2024 when memory remained a commodity business.
Last quarter, margins hit 56%. Management projects 68% for the current period, closing in on Nvidia’s 73% margins on graphics processing units.
CFO Mark Murphy addressed investors Wednesday, explaining Micron satisfies roughly half to two-thirds of demand for certain key customers. Companies now negotiate multi-year supply agreements to secure allocation and cap pricing.
“We are doing everything we can to add capacity,” Murphy said. “But there is no easy or fast way to get that done.”
Price data confirms the crunch. Taiwan’s Commercial Times reported DRAM contract prices jumped over 170% in 12 months. DDR5 memory chips saw steeper increases.
Circular Technology, a Massachusetts-based data center hardware reseller, tracks DDR5 prices up nearly 500% since September. “We’re nowhere near the end of the shortage,” said Brad Gastwirth, the firm’s research director. “I think it lasts through the end of 2026 and at least the first half of 2027.”
Products Sold Out Through Year-End
Micron noticed high-bandwidth memory demand accelerating between August and October as hyperscalers announced massive data center projects. The company fast-tracked construction on its second Boise facility in response.
Chief business officer Sumit Sadana confirmed HBM4 and HBM3e products are completely sold out through December. Micron is already delivering HBM4 chips to customers with additional shipments scheduled next quarter.
MU stock briefly retreated in early February after SemiAnalysis reported Micron’s HBM4 chips missed qualification for Nvidia’s Vera Rubin server platform. The research firm cited data transmission speed concerns.
Sadana disputed the report. Nvidia declined comment on supplier relationships.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
