Shares of memory and storage solutions provider Micron (NASDAQ:MU) are inching upward today on multiple reports of the company planning to pour nearly $604 million into its chip packaging unit in China. The investment in the facility located in Xian is expected to take place over a few years.
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Further, the company is moving closer to outlaying about $1 billion for a chip unit in India as well. The move is part of an effort to achieve a diversified geographic presence and an announcement could come as early as Indian Prime Minister Narendra Modi’s upcoming visit to the U.S., according to Bloomberg. Moreover, the investment could also rise up to $2 billion!
On the other hand, the investment in China comes after Micron was accused of failing a network security review by Chinese regulators.
Micron CEO Sanjay Mehrotra commented on the investment, “This investment project demonstrates Micron’s unwavering commitment to its China business and team.” Despite recent regulatory hiccups, shares of the company have gained nearly 11% over the past month.
Overall, the Street has a $71.96 consensus price target on Micron alongside a Moderate Buy consensus rating.
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