Why Micron Stock Surged Today

Shares of** Micron Technology **(MU 1.05%) rallied on Thursday after the memory chip maker highlighted its plans to bolster its semiconductor supply chain.

Image source: The Motley Fool.

Bringing more silicon wafer production to the U.S.

Micron intends to invest up to $3 billion to expand its U.S. production network and secure the materials it needs to satisfy the booming artificial intelligence (AI)-driven demand for its memory chips.

As part of those plans, Micron will contribute $500 million in strategic financing to semiconductor supplier GlobalWafers to expand its silicon wafer manufacturing site in Texas.

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NASDAQ: MU

Micron Technology

Today's Change

(-1.05%) $-10.39

Current Price

$981.25

Key Data Points

Market Cap

$1.1TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$954.13 - $998.00

52wk Range

$103.38 - $1255.00

Volume

859.4K

Avg Vol

51.2M

Gross Margin

72.60%

Dividend Yield

0.05%

Micron and GlobalWafers also agreed to a 10-year supply deal that will help Micron meet its raw silicon wafer needs.

"Securing a reliable supply of critical input materials is essential to supporting Micron's long-term growth and technology roadmap," Micron executive Ben Tessone said in a press release.

A decade of expansion lies ahead

Peering further into the future, Micron said it will invest over $250 billion in manufacturing and technology through 2035 to advance its long-term plan to produce 40% of its DRAM (dynamic random access memory) in the U.S.

These investments will help lessen Micron's reliance on foreign supply chains and reduce its exposure to geopolitical disruptions, thereby decreasing risks for shareholders.