Micron (MU) Advances New York Megafab as It Exits China Server Chips Is Its US Pivot Set to Transform Global Strategy?

• In recent days, Micron Technology announced it would exit the server chip business for data centers in China after its operations failed to recover from a 2023 government ban, while simultaneously advancing approvals for its planned US$100 billion semiconductor megafab in New York.
• This move underscores the company's accelerating shift toward US-based manufacturing and rising dependence on global AI-driven memory demand amid increasingly complex geopolitical pressures.
• We'll explore how the withdrawal from China's server market and megafab progress could reshape Micron's investment outlook.

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Micron Technology Investment Narrative Recap

To own Micron shares today, you need to believe in the long-term expansion of AI and data center memory demand, which is expected to drive high-margin growth for the company. The exit from China’s server chip market comes after a prolonged ban and appears to be a contained risk for Micron’s broader AI-driven catalysts, though it reinforces ongoing geopolitical uncertainties as the leading short-term challenge. For now, this does not materially impact the main growth story tied to AI-related memory products.

One highly relevant recent announcement is the approval of a new power line for Micron’s planned US$100 billion semiconductor megafab in New York. This development underpins the company’s commitment to scaling production in the US, potentially strengthening its position as a key supplier to AI-focused data center customers globally. Such manufacturing investments remain central to Micron’s ability to capitalize on memory shortages amid surging AI infrastructure demand.

But despite surging demand, investors should be aware of persistent risks around supply chain fragility and...

Read the full narrative on Micron Technology (it's free!)

Micron Technology's outlook points to $53.6 billion in revenue and $13.6 billion in earnings by 2028. This reflects a 16.6% annual revenue growth rate and a $7.4 billion increase in earnings from the current $6.2 billion.

Uncover how Micron Technology's forecasts yield a $187.17 fair value, a 8% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members produced 39 fair value estimates for Micron, ranging from US$107.63 to US$203.92 per share. As you consider these varied opinions, remember that ongoing geopolitical tensions could reshape the company’s growth opportunities.

Explore 39 other fair value estimates on Micron Technology - why the stock might be worth as much as $203.92!

Build Your Own Micron Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Micron Technology research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Micron Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Micron Technology's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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