Micron Technology Stock Jumps In Pre-Market After Securing $6.1B Investment For US Chip Manufacturing

The White House announced on Tuesday that Nvidia, AMD rival Micron Technology Inc. MU has received a substantial investment of over $6.1 billion. Following this, the stock jumped by 2.47% during pre-market hours.

What Happened: The investment will support the construction of advanced memory chip facilities in Clay, New York, and Boise, Idaho. Vice President Kamala Harris stated that this initiative is expected to create at least 20,000 jobs by the decade’s end.

The Department of Commerce has also agreed to preliminary terms for an additional $275 million investment to expand Micron’s facility in Manassas, Virginia. This expansion will support critical technologies vital to the defense, automotive, and national security sectors.

See Also: Intel Stock Is Where It Was 27 Years Ago: How The World’s Leading Chipmaker Lost The Plot, Thrice

The administration’s efforts, according to Harris, aim to increase the U.S. share of advanced memory manufacturing from nearly zero to 10% over the next decade. The initiative is part of a broader strategy to strengthen the U.S. supply chain and bolster national and economic security.

Why It Matters: The investment in Micron Technology comes amid a challenging landscape for U.S. chipmakers. Recently, Micron paused its application for U.S. semiconductor grants. This decision was revealed by CEO Steve Sanghi at a UBS conference, highlighting the hurdles faced by companies in securing financial support under the CHIPS Act. Microchip Technology was a potential recipient of $162 million in grants but has seen its stock fall by 29% year-to-date, contributing to the decline in the Philadelphia Stock Exchange Semiconductor Index.

Meanwhile, as per Benzinga Pro data, Micron has a consensus price target of $145 based on the latest ratings of Keybanc, Cantor Fitzgerald, and Baird.

Meanwhile, in the premarket session, other chipmakers such as Nvidia NVDA, Advanced Micro Devices AMD, ASML ASML, and Intel INTC were either in the red or trading marginally higher.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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