Why Micron Stock Popped Today

By Rich Smith – Mar 16, 2026 at 10:18AM ESTKey PointsHBM prices are surging.Micron is surging HBM production in Taiwan.This won't start to happen before 2028, however.Micron (MU +5.27%) stock jumped 6.3% through 9:50 a.m. ET Monday after announcing it completed purchase of a Taiwanese production site from Powerchip Semiconductor Manufacturing Corporation (PSMC). The 300,000-square-foot cleanroom facility will be upgraded and expanded to focus on DRAM production, including high-bandwidth memory (HBM) chips used in artificial intelligence. Image source: Micron. News... sort of This isn't a surprise. Micron announced in January it would buy the Tongluo site from PSMC. Today's news just makes the purchase official and final. Nor will HBM production increase immediately. Refitting the facility will take time, and Micron doesn't expect "meaningful" production to begin before fiscal 2028. Long term, though, the boost in production should be significant. Currently set up for production of ordinary DRAM semiconductors, the retrofitted facility will be more advanced -- and much bigger. The planned expansion will nearly double the amount of cleanroom space to 570,000 square feet and will collaborate with Micron's existing Taiwanese HBM facility. ExpandNASDAQ: MUMicron TechnologyToday's Change(5.27%) $22.44Current Price$448.57Key Data PointsMarket Cap$480BDay's Range$444.66 - $454.8352wk Range$61.54 - $455.50Volume897KAvg Vol35MGross Margin45.53%Dividend Yield0.11% What does it mean for Micron stock? HBM prices are surging due to increased demand and insufficient supply to meet it. The forecast is current for basic DRAM prices to rise 50% to 55% sequentially in Q1 2026, versus Q4 2025, with price increases for HBM memory rising even faster. Micron's already profiting from this trend, with sales up 57% last quarter, and profits up 180%. Forecasts for the coming quarter's results anticipate the revenue growth rate accelerating to 138%, and the profits growth rate -- to more than 450%! Even at a share price 40 times trailing earnings, Micron stock looks cheap if this rate of growth continues. It makes sense the company would want to capitalize by increasing production. The big worry: What if increased production eliminates the supply deficit... and drives prices back down? That's why Micron is called a cyclical stock.Read NextMar 16, 2026 •By Keithen DruryBetter Chip Stock to Buy: Micron or Taiwan Semiconductor?Mar 16, 2026 •By Keith SpeightsWall Street Likes SanDisk More Than Micron. Should You?Mar 15, 2026 •By Adria CiminoBillionaires David Tepper and Michael Platt Sold Nvidia Shares and Bought This AI Stock That's Climbed 40,000% Since its IPO.Mar 15, 2026 •By Manali Pradhan, CFAShould You Buy Micron Before Earnings? Here's the 1 Thing That Matters.Mar 15, 2026 •By Adam SpataccoMeet the Monster Stock That Continues to Crush the MarketMar 14, 2026 •By Will HealyThe Artificial Intelligence (AI) Stock That Refuses to Slow Down, and It's Not NvidiaAbout the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedMicron TechnologyNASDAQ: MU$448.57(+5.27%)+$22.44*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.