Micron Technology's stock soared 5.32% in pre-market trading on Monday, driven by the company's strategic expansion in Taiwan and positive analyst sentiment ahead of its upcoming earnings report.

The memory chipmaker announced it has completed the acquisition of Powerchip Semiconductor Manufacturing's P5 semiconductor site in Miaoli County, Taiwan, and plans to build a second manufacturing facility at the same location. This expansion is aimed at increasing production of advanced DRAM products, including high-bandwidth memory (HBM), to meet the surging demand from artificial intelligence applications.

Several analysts raised their price targets on Micron following the announcement, with RBC Capital increasing its target to $525 from $425 and maintaining an Outperform rating, while TD Cowen adjusted its target to $500 from $450. The positive sentiment is further bolstered by expectations of strong quarterly earnings, with the company scheduled to report its fiscal second-quarter results later this week.