Micron Technology (MU) has agreed to invest as much as $100 billion to build a semiconductor-manufacturing campus in upstate New York, adding to a slew of chip-making plans in the U.S. as Biden’s Administration tries to boost domestic manufacturing of those critical components.

The chipmaker said Tuesday that it intends to build the largest semiconductor-fabrication facility in the U.S., with production at the Clay, N.Y., plant starting later in the decade. Idaho-based Micron (MU) comes less than two months after U.S. President Joe Biden signed the CHIPS and Science Act of 2022, which provides $52 billion in federal grants and subsidies for chip companies to build more relevant U.S. domestic factories and facilities. Micron (MU) CEO Sanjay Mehrotra said the CHIPS Act is directly involving his company's New York facility building.

Along with Micron (MU), Intel (INTC) rose nearly 2%, while Advanced Micro Devices (AMD), Nvidia (NVDA) and Qualcomm (QCOM) spearheaded by 3%, 4% and 3.5%, respectively.

Micron expects certain demand growth to the tune of 10% or so, which is frankly quite low. That, combined with inventory adjustments, are rumored to result in demand to be even lower, hurting pricing significantly. As the company itself states, it's expecting a substantial disconnect between pricing and supply.

However, the company is forecasting a change for next year. The company’s management was wrong about the market weakness in FY'22, but the stock itself is quite expensive, even after factoring the CHIPS Act’s positive impact. At P/S well over 3, MU can’t be viewed as an undervalued company, even though P/E and Debt/EBITDA look much nicer. However, the company expects supply growth to be well below demand growth across both DRAM and NAND segments, with immediately forecasted growth rates going back to the long-term rates. The company is slightly adjusting its long-term DRAM bit growth forecast.