Micron Technology, Inc. (NASDAQ:MU) shares are trading higher Tuesday. Over the weekend, the company inked a letter of intent to purchase Powerchip Semiconductor Manufacturing Corporation’s P5 fabrication site in Tongluo, Miaoli County, Taiwan and began a strategic partnership with PSMC.
Micron Expands Taiwan Footprint, PSMC Partnership Takes Shape
Micron said it signed an exclusive letter of intent to acquire PSMC's P5 fabrication site for total cash consideration of $1.8 billion. The transaction includes an existing 300mm fab cleanroom spanning approximately 300,000 square feet.
The agreement also outlines plans to establish a long-term relationship between Micron and PSMC, including support for Micron's post-wafer assembly processing and continued backing of PSMC's legacy DRAM portfolio.
Micron said the acquisition is expected to close by calendar second quarter 2026, subject to final agreements and regulatory approvals. Following the close, Micron will assume control of the facility and ramp DRAM production in phases, with meaningful DRAM wafer output expected to begin in the second half of calendar 2027.
The company said the Tongluo site's proximity to Micron's existing Taichung operations is expected to create operational synergies and support growing global demand for memory solutions.
Technical Analysis Of Micron
Micron is trading 9.3% above its 20-day simple moving average and 4.6% above its 100-day SMA, demonstrating a robust short-term trend. Shares have increased 234.98% over the past 12 months and are currently positioned closer to their 52-week highs than lows, reflecting strong investor confidence.
The RSI is at a neutral level, indicahttps://pro.benzinga.com/dashboardting that the stock is neither overbought nor oversold. Meanwhile, the MACD is below its signal line, suggesting some bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Micron Technology, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 98.89/100) — Stock is outperforming the broader market.
- Quality: Strong (Score: 92.74/100) — Balance sheet remains healthy.
- Value: Risk (Score: 42.64/100) — Trading at a steep premium relative to peers.
The Verdict: Micron Technology’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum (98.89) confirms the strong trend, the Value (42.64) score warns that the stock is priced for perfection—investors should ride the trend but use tight stop-losses.
MU Price Action: At the time of writing, Micron shares are trading 1.91% higher at $369.55, according to data from Benzinga Pro.
Image via Shutterstock
