What Happened?
Shares of memory chips maker Micron (NYSE: MU) jumped 3.1% in the afternoon session after several analysts issued positive ratings and price target increases, citing surging demand for the company's memory chips used in artificial intelligence. The optimism was fueled by reports that Micron's High-Bandwidth Memory (HBM), a key component for powering AI processors, was sold out through 2026. This intense demand prompted specific actions from analysts. For instance, RBC Capital initiated coverage on the stock with an 'Outperform' rating and set a price target of $425. Other analysts also grew more bullish, with KeyBanc and Bank of America raising their price targets. The consensus was that the current memory chip cycle would be “stronger for longer” than previous ones, largely due to the sustained growth in AI.
After the initial pop the shares cooled down to $343.53, up 3% from previous close.
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What Is The Market Telling Us
Micron’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 4.5% on the news that a wave of positive developments, including a credit rating upgrade from Moody's and plans for a new $100 billion manufacturing plant in New York.
The ratings agency lifted Micron's senior unsecured debt rating, pointing to a strong competitive position and robust demand for memory products used in artificial intelligence systems. This demand was reflected in the company's financials, with DRAM revenues having jumped 69% year-over-year in the first quarter of fiscal 2026. Underscoring the tight supply, Micron's high-bandwidth memory (HBM) chips were reportedly sold out for 2026. To meet future needs, the company announced it would break ground on the new semiconductor megafab in New York, which is set to become the largest in the U.S. This positive news flow led analysts at firms including Piper Sandler, UBS, and Bernstein to boost their price targets on the stock.
Micron is up 8.9% since the beginning of the year, and at $343.53 per share, it is trading close to its 52-week high of $345.87 from January 2026. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $4,256.
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