Micron Technology Surges on AI Chip Demand

Comparisons to Taiwan Semiconductor Manufacturing's success raise questions about Micron's long-term potential.

Published on Feb. 22, 2026

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Micron Technology's stock has surged over 40% since the start of 2026 and nearly 400% since 2025, driven by strong demand for its memory chips used in artificial intelligence (AI) applications. This has led to comparisons between Micron and Taiwan Semiconductor Manufacturing (TSMC), another major chipmaker. However, the two companies operate in different chip markets, with Micron focused on memory chips and TSMC on logic chips. While Micron's current success is undeniable, the cyclical nature of the memory chip business raises questions about the sustainability of its stock price gains.

Why it matters

Micron's rapid stock price appreciation has drawn comparisons to TSMC, which has also seen tremendous growth in recent years. However, the two companies operate in different chip markets, with Micron's memory chips being more susceptible to boom-and-bust cycles than TSMC's logic chips. Investors need to understand the unique dynamics of the memory chip industry and the risks associated with Micron's business model before deciding whether to invest.

The details

Micron is benefiting from strong demand for its memory chips, particularly in the AI market. However, the memory chip business is highly cyclical, with prices and profits tied directly to supply and demand. In contrast, TSMC's logic chips are more differentiated, with design advantages providing an edge over competitors. This makes the logic chip market more competitive but also less prone to severe boom-and-bust cycles. Micron is working to increase its production capacity, but new supply coming online could eventually lead to a decline in memory chip prices and hurt the company's profitability.

  • Micron's Idaho facility is expected to come online in mid-2027.
  • Micron's New York facility is expected to be operational by 2030.

The players

Micron Technology

An American semiconductor company that manufactures memory chips, including DRAM and NAND flash memory.

Taiwan Semiconductor Manufacturing (TSMC)

A Taiwanese semiconductor company that is the world's largest contract chipmaker, focusing on the production of logic chips.

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What’s next

Micron is working to increase its production capacity with new facilities coming online in the coming years, which could help meet demand but also lead to an oversupply and lower prices in the memory chip market.

The takeaway

While Micron's current success is undeniable, the cyclical nature of the memory chip business raises questions about the sustainability of its stock price gains. Investors should carefully consider the unique dynamics of the memory chip market and the risks associated with Micron's business model before deciding to invest.