Micron Stock (MU) Gains As Company Breaks Ground on Singapore Fab Facility

Micron Technology stock price (NASDAQ: MU) jumped 4% in pre-market trading to $404.5 following the announcement that the memory chip manufacturer has broken ground on an advanced wafer fabrication facility in Singapore. The move represents one of the semiconductor industry's most significant capacity expansion projects and underscores Micron's aggressive positioning to capture growing demand from artificial intelligence and data-centric applications.

The new facility, located within Micron's existing NAND manufacturing complex in Singapore, will involve a planned investment of approximately $24 billion over the next decade. The project is designed to ultimately provide 700,000 square feet of cleanroom space, with wafer output scheduled to commence in the second half of calendar 2028. The groundbreaking ceremony drew attendance from prominent Singaporean government officials, highlighting the strategic importance of the investment to both the company and the nation's semiconductor ecosystem.

Markets responded enthusiastically to the announcement, pushing the stock toward its recent all-time high of $353.08 reached earlier in January 2026. The pre-market surge reflects growing confidence in Micron's capacity to meet accelerating demand for memory and storage solutions, particularly as AI workloads continue to proliferate across enterprise and cloud computing environments. The Singapore expansion follows a clear strategic pattern for the company, which has been systematically building out its advanced manufacturing footprint in the region.

This latest groundbreaking comes on the heels of another significant Singapore investment announced in January 2025. Micron broke ground on a $7 billion High-Bandwidth Memory advanced packaging facility adjacent to its current Singapore operations. That facility, the first of its kind in Singapore, is scheduled to begin operations in 2026 with substantial expansion planned for 2027 to address AI-driven growth. The HBM facility represents a critical component of Micron's strategy to capture high-margin opportunities in the rapidly expanding AI memory market.

The company's capital deployment strategy has garnered increased attention from the analyst community. In December 2025, Wolfe Research raised its price target for Micron from $200 to $300, citing better-than-expected pricing trends driven by improved server demand and stability in handset and PC segments. The firm highlighted a potential upside scenario where Micron could achieve $30 in earnings per share, primarily attributable to a strong ramp in HBM production expected in 2027.

Price Targets

The timing of the Singapore wafer fabrication facility appears calculated to address anticipated supply-demand dynamics in the NAND market. With wafer output not expected until the second half of 2028, the facility will come online as AI applications continue to drive exponential growth in storage requirements. The decade-long investment timeline also provides Micron with flexibility to adjust capital deployment based on market conditions while securing strategic manufacturing capacity in a geographically stable location.

The stock's pre-market strength suggests markets view the Singapore expansion as validation of improving fundamentals in the memory sector. After navigating a challenging period of pricing volatility and inventory corrections, Micron appears positioned to benefit from a more favorable supply-demand environment driven by AI infrastructure buildouts and next-generation computing platforms.

The $24 billion commitment signals management confidence in sustained demand growth extending well into the next decade, potentially supporting continued upward momentum in the stock as the company executes on its capacity expansion roadmap.