Micron Technology shares soared 13.4% through 1 p.m. ET Tuesday, extending a two-day rally. The jump followed a Nikkei Asia report that Taiwan Semiconductor Manufacturing Company will raise contract chip manufacturing prices by up to 10% in 2027, with some increases reaching 20%, to offset rising costs for materials, equipment, and new overseas plants. The move signals strong AI-driven demand that allows chipmakers to pass on higher costs, reinforcing the bull case for memory-chip supplier Micron. Separately, Bank of America analyst Vivek Arya dismissed concerns that cheap Chinese AI models threaten Micron, arguing that lower-quality GPUs may actually require more memory chips for inference, giving investors another reason to buy the stock.
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