Will Micron Technology's $100 Billion Splurge Bring the Stock Out of Its Misery?
Micron Technology (NASDAQ: MU) is coming off a terrible quarter. The company's revenue and earnings fell significantly thanks to the declining prices of memory chips stemming from an oversupply in the industry.
The company's guidance indicates that things are about to get worse because memory prices are expected to fall further, which could eat into the chipmaker's massive pile of cash. That's the reason why Micron has decided to lower its capital spending by over 30% in the new fiscal year. But shortly after, the company announced a massive investment of up to $100 billion in central New York.
The chipmaker plans to spend this money over a 20-year period to construct a massive fabrication plant. Micron says that the first phase of this investment -- worth $20 billion -- could be completed by 2030. Construction of the site is expected to begin in 2024 and production from the new plant should start ramping up in the second half of the decade.
Source Fool.com
