Micron Technology NASDAQ:MU may be signaling that silicon wafer supply could become the next semiconductor bottleneck as AI-driven memory and logic investment ramps through the end of the decade, according to Wedbush.
Micron took a stake in GlobalWafers to support financing for its wafer plant in Sherman, Texas. The company also plans to invest up to $3 billion across the U.S. semiconductor supply chain and recently lifted its total U.S. spending target to more than $250 billion through 2035 from $200 billion.
Micron makes DRAM, NAND and other memory products used in AI servers, smartphones, PCs and data centers. Its expansion plans are aimed at meeting surging AI demand and eventually producing 40% of its DRAM in the U.S.
Wedbush analyst Matt Bryson said the investment suggests Micron expects wafer requirements to rise sharply in 2028, 2029 and 2030. Stronger future demand could also extend the current memory cycle, though new capacity may eventually increase oversupply risk.