Micron Aggressively Lifts U.S. Spending to $250 Billion. There’s More Room for MU Stock to Run.

Micron (MU) is among the hottest stocks in 2026 and for good reason. Over the last 12 months, MU stock has returned 705%, while it is up a whopping 1,540% in the last three years. 

Valued at a market cap beyond $1 trillion, Micron is among the largest companies in the world. Yesterday, the Idaho-based chipmaker announced it is raising its planned U.S. investment to more than $250 billion through 2035. That is a massive jump from prior plans, and it comes as artificial intelligence pushes demand for memory chips beyond what the industry can currently supply.

DRAM and NAND chips store and move data inside computers, servers and AI systems. Every AI chatbot response, every training run for a large language model, and every autonomous vehicle decision depends on memory working alongside the processor.

Micron's chairman, president, and CEO Sanjay Mehrotra said during the company's fiscal third quarter earnings call that data center revenue topped $25 billion for the quarter, putting Micron on an annualized run rate of more than $100 billion. He also said DRAM and NAND demand is significantly outpacing supply, and that tight conditions are expected to last beyond 2027.

Building new memory factories takes years, while the demand for AI chips continues to accelerate in 2026. Micron aims to fill this gap by locking in long-term supply deals and building new capacity.  

Micron’s New Chip Manufacturing Unit

Micron recently celebrated a "first concrete pour" milestone at its Clay, New York site, more than a quarter ahead of the original schedule. The move signals the shift from site preparation to vertical construction at what will become the largest semiconductor manufacturing site in U.S. history.

Micron broke ground on the New York campus in January 2026. In less than six months, Micron says it directed roughly $675 million to New York-based contractors and suppliers, and more than 80% of workers on site so far have been New York residents. 

• New York Governor Kathy Hochul called it the largest private investment in state history, noting that up to 50,000 jobs are expected to be created by the project.
• U.S. Secretary of Commerce Howard Lutnick pointed to nearly 100,000 jobs tied to Micron's broader U.S. footprint.
• The New York campus could eventually include up to four fabs.
• Combined with ongoing projects in Idaho and Virginia, Micron says its U.S. buildout is expected to create more than 90,000 jobs total.

Micron also said it will invest up to $3 billion to build out the domestic semiconductor supply chain. A big piece of that is $500 million in strategic financing for GlobalWafers, a raw silicon wafer maker expanding its Sherman, Texas facility. The two companies also signed a 10-year supply agreement for wafer capacity, a critical raw material Micron needs to keep its fabs running.

Micron recently signed strategic customer agreements with Ford (F) and General Motors (GM) to secure long-term memory and storage supply for future vehicle platforms. Modern vehicles increasingly rely on memory chips for driver-assistance features, in-cabin technology, and eventually more autonomous driving capabilities, so automakers are eager to lock in supply years in advance.

On the earnings call, Mehrotra noted that Micron has now signed 16 of these strategic customer agreements across data center, consumer and automotive markets, with roughly $100 billion in cumulative minimum revenue tied to them. 

What Next for MU Stock Price

For investors, the message is simple. Micron is betting that AI demand for memory is not a short-term spike but a multi-year trend, and it is willing to spend record sums to capture it. The company posted record fiscal third-quarter revenue of $41.5 billion, up 74% sequentially, along with a record gross margin. 

For everyday consumers, the ripple effects may show up later in the form of more capable phones, laptops, cars and AI tools, though tight supply could also keep memory prices elevated in the near term. Either way, Micron's $250 billion bet shows just how central memory chips have become to the AI economy, and how far the company is willing to go to keep up with demand.

Of the 40 analysts covering Micron stock, a consensus rates it a “Strong Buy,” with 31 recommending “Strong Buy,” five siding with “Moderate Buy,” and four recommending “Hold.” The average MU stock price target is $1,487.65, indicating a 54.4% upside, while the Street-high target price is $2,000, which implies a 107.5% upside from here.