Micron, AMD, Intel rise after record chip investment plan

Micron, AMD, and Intel rise after Micron’s $250B US investment plan to boost chip production and meet AI demand.

Micron, AMD, and Intel experienced pre-market gains as demand for AI chips surged, prompting Wall Street to view memory as a strategic asset. Micron revealed a significant investment plan, increasing its US budget to $250 billion by 2035 and commencing construction on the nation’s largest semiconductor plant. The company will allocate up to $3 billion to bolster the local supply chain, including $500 million to expand silicon wafer production in Texas through a ten-year agreement with GlobalWafers. These efforts are designed to secure essential materials and address the rising need for memory in AI and high-performance computing. Micron’s announcement also positively impacted other chip equipment manufacturers. However, a key risk remains: if memory demand weakens, it could affect prices and the feasibility of these expansion plans.