Micron leads sector gains after announcing a $3 billion investment to strengthen US semiconductor supply chain and secure wafer capacity.
Micron Technology shares rose 8% Thursday, driving broader gains in memory and AI-related chip stocks. The rally followed reports of strong institutional demand for SK Hynix’s US IPO and Micron’s $3 billion investment to bolster the US semiconductor supply chain.
The investment includes a 10-year supply agreement with GlobalWafers for silicon wafer production in Texas. High-bandwidth memory shortages, critical for AI data centers, have fueled sector gains, with supply constraints expected to persist through 2027.
SK Hynix will debut on the Nasdaq Friday, offering 177.9 million American depositary shares under the ticker SKHY. The IPO’s oversubscription reflects continued investor optimism in the AI memory trade.