Micron Technology is deploying $2.75 billion to build an assembly and test facility in Sanand, Gujarat, India, a move that expands its production network into a key global technology market. The project, supported by government partners, will convert advanced DRAM and NAND wafers into finished memory and storage products for customers worldwide. Micron shares rose nearly 6% on September 17 following the announcement.
The Sanand facility has already entered commercial operations and delivered its first shipment of memory modules to Dell Technologies. Dell will use these modules in laptops manufactured and sold in India. Micron anticipates the plant will process tens of millions of chips in 2026, scaling to hundreds of millions of units by 2027. At full capacity, the initial phase will encompass over 500,000 square feet of cleanroom space.
The expansion aligns with rising infrastructure spending driven by artificial intelligence, which continues to increase demand for high-capacity memory and storage. Micron, based in Boise, Idaho, produces DRAM, NAND flash memory, and storage solutions for data centers, personal computers, smartphones, and intelligent machines. The company currently has a market capitalization of approximately $1.1 trillion.
Micron reported a record third quarter of fiscal 2026 on June 24, driving a 16% increase in stock price the following day. Revenue surged to $41.5 billion, up 346% year-over-year, surpassing the analyst estimate of $36.28 billion. This marked the company's fifth consecutive record quarter. DRAM generated $31.3 billion in revenue, up 343% year-over-year, with prices rising roughly 60% while bit shipments increased in the low single digits. NAND revenue reached $9.9 billion, up 361% year-over-year, with prices climbing nearly 85%.
Data center revenue exceeded $25 billion in the quarter, while data center SSD revenue topped $5 billion, more than doubling sequentially. Automotive and Embedded segments delivered record revenue of $4.6 billion, and Mobile and Client generated $11.5 billion. Non-GAAP gross margin hit a record 84.9%, and non-GAAP operating margin climbed to 81.2%, up 54 percentage points year-over-year. Non-GAAP earnings per share rose 1,215% year-over-year to $25.11, exceeding the consensus forecast of $19.66.
Operating cash flow reached $25.4 billion, supporting a record $18.3 billion in free cash flow after $7.1 billion in capital expenditures. Micron ended the quarter with $24.4 billion in net cash, aided by debt reduction and credit-rating upgrades from all three major agencies. Management guided for fourth-quarter revenue of around $50 billion and non-GAAP earnings per share near $31, while cautioning that a projected gross margin of roughly 86% indicates a significant slowdown in the rate of price increases.
Wall Street maintains a strongly positive stance on Micron stock. TD Cowen analyst Krish Sankar holds a "Buy" rating with a $1,600 price target, citing tight memory supply and sustained AI-driven demand. Of 41 analysts covering the stock, 33 rate it a "Strong Buy," four a "Moderate Buy," and four a "Hold." The average price target stands at $1,476.64, implying 41% potential upside from current levels.