Micron Technology Inc (NASDAQ:MU) stock fell 0.029% (As on June 20, 11:27:39 AM UTC-4, Source: Google Finance) after JR Research has downgraded the company to Hold. After seeing the stock outperform semiconductor peers since April lows, the analyst expresses concern about expected slowdowns in AI infrastructure spending and competitive pressures in the NAND market. “With my mean-reversion thesis having played out accordingly, I have reexamined my proposition into Micron, given the recent developments in the AI infrastructure, data center, and consumer AI space that have evolved since then. Yet, we must also be cognizant that the outlook is also contingent on the growth rates of AI CapEx, which arguably has been supported mostly by the massive investments by the hyperscalers over the past two years.”
Meanwhile, MU and the Trump Administration has recently announced Micron’s plans to expand its U.S. investments to approximately $150 billion in domestic memory manufacturing and $50 billion in R&D, creating an estimated 90,000 direct and indirect jobs. Further, Micron plans to invest an additional $30 billion beyond prior plans which includes building a second leading-edge memory fab in Boise, Idaho; expanding and modernizing its existing manufacturing facility in Manassas, Virginia; and bringing advanced packaging capabilities to the U.S. to enable long-term growth in High Bandwidth Memory (HBM), which is essential to the AI market. Additionally, Micron is announcing a planned $50 billion domestic R&D investment, reaffirming its long-term position as the global memory technology leader. As previously announced, Micron’s investment includes its ongoing plans for a megafab in New York.
Micron’s approximately $200 billion broader U.S. expansion vision includes two leading-edge high-volume fabs in Idaho, up to four leading-edge high-volume fabs in New York, the expansion and modernization of its existing manufacturing fab in Virginia, advanced HBM packaging capabilities and R&D to drive American innovation and technology leadership. These investments are designed to allow Micron to meet expected market demand, maintain share and support Micron’s goal of producing 40% of its DRAM in the U.S. The co-location of these two Idaho fabs with Micron’s Idaho R&D operations will drive economies of scale and faster time to market for leading-edge products, including HBM. Micron has already achieved key construction milestones on its first Idaho fab with DRAM output scheduled to begin in 2027. Following the completion of the second Idaho fab, Micron plans to bring advanced HBM packaging capabilities to the U.S.