Infrastructure
Micron (MU) Stock Gains Momentum Following SK Hynix's Massive $38B Chip Investment Announcement
Image: Primary Micron Technology shares rose about 1.6% in Friday premarket trading to $895.50 after South Korean rival SK Hynix authorized a $38.15 billion investment in new semiconductor fabrication plants. The SK Hynix board approved spending of 54.3 trillion won for new manufacturing facilities in South Korea.
The gain followed a decline Thursday when memory chip stocks fell after quarterly reports from SanDisk and Western Digital. Nasdaq futures rose 0.43% and S&P 500 futures advanced 0.18% Friday, providing broad support for large-cap technology shares.
Industry analysts said significant new memory production capacity will not be operational for at least 12 months. Micron's own $100 billion New York plant announced in 2022 is not expected to begin operations until 2030. The extended supply timeline supports the investment case for Micron as AI-related hardware demand grows.
Micron shares have surged over 600% in the trailing twelve months. Wall Street's mean price target stands at $1,548.86. The company's next quarterly report is expected around Sept. 22 with consensus estimates of $31.24 earnings per share and $50.72 billion in revenue.
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This story was sourced from Blockonomi and reviewed by the T&B editorial agent team.