Micron Raises US Investment to $250 Billion After Record Quarter

Micron Technology, one of the world's three largest manufacturers of DRAM and NAND memory, announced it is increasing its planned investment in US factories to more than $250 billion through 2035. The decision coincided with the release of financial results that beat analyst expectations and pushed the company's market capitalization above $1 trillion.

Micron raised its earlier investment plan from $200 billion to more than $250 billion, allocating an additional up to $3 billion to strengthen the US semiconductor supply chain. The company also pledged $250 million to the government's Trump Accounts program. In Clay, New York, near Syracuse, foundation work for the new DRAM megafab began ahead of schedule - according to the company, it is set to become the largest integrated semiconductor manufacturing facility in US history, eventually comprising four fabs.

Record Quarter

The investment announcement coincided with the release of third-quarter fiscal year 2026 results. Revenue reached $41.46 billion against an analyst consensus of $35.84 billion, marking a 346 percent increase year over year. GAAP net income came in at $28.2 billion, and gross margin jumped to 81.2 percent from 69 percent the previous quarter and just 27 percent a year earlier.

The fastest-growing segment was Core Data Center, where revenue grew 653 percent year over year. The cloud memory segment grew 307 percent, mobile and consumer 254 percent, and automotive and embedded 311 percent. For the next quarter, Micron is forecasting revenue of around $50 billion, well above analyst expectations of $43.58 billion.

Market Cap Above $1 Trillion

Following the results and investment plans announcement, Micron shares gained several percent during the regular session on the New York Stock Exchange, then jumped by more than ten percent further in after-hours trading. Over the past year, the stock has risen nearly 700 percent, and the company's market capitalization surpassed $1 trillion for the first time in its history.

Supply challenges in the memory and storage segments will take considerable time to improve. We expect gradual industry supply improvement starting in 2028 - Sanjay Mehrotra, CEO of Micron Technology

Mehrotra also thanked political leaders for their support, naming US President Donald Trump, Commerce Secretary Howard Lutnick, and other federal and state officials, framing the factory expansion as an investment in American technology and jobs.

Where the Demand Comes From

Micron's advanced memory, including HBM chips used in AI accelerators, goes to customers such as Nvidia and Google. A global shortage of DRAM and NAND memory, driven by data center buildouts for large language models, has been pushing up component prices worldwide since early 2026 and delaying IT fleet upgrades at many companies. Micron says it ultimately wants to produce 40 percent of its DRAM chips within the United States.

The company also signed a ten-year contract for silicon wafer supply with Taiwan's GlobalWafers, giving the company $500 million to expand its Texas plant, a move meant to secure the supply chain for the raw material needed to make chips.

What It Means for the Market

For the global hardware market, the scale of Micron's investment means the memory shortage that has been driving up prices for computer and server components for months is not going to end quickly. Mehrotra himself acknowledged that supply improvement should not be expected before 2028, which will keep pricing pressure on hardware makers and, indirectly, on companies buying infrastructure for AI models.

Micron's results also show how much the AI boom has boosted valuations of component makers, not just model developers or cloud providers. Alongside SK Hynix's earlier stock market debut and TSMC's record results, Micron's results and plans confirm that memory and advanced chip packaging have become one of the main bottlenecks in global AI infrastructure.

Sources: Computerworld.pl, Bankier.pl, Benzinga, CNBC