Micron Technology (MU) is undergoing a radical business shift, announcing it will exit its consumer memory business to place all its bets on Artificial Intelligence (AI). The memory-chip company confirmed Wednesday that it will stop selling its Crucial-branded consumer memory products by the end of February 2026, though it will continue to honor existing warranties.
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The move highlights how huge the surge in AI demand has been and how it is currently transforming the memory-chip industry. Micron is now focused entirely on ramping up the supply of high-end components required for AI hardware.
AI Chip Race Forces Micron to Dump Consumer Business
Micron’s decision is driven by the urgent race to supply High-Bandwidth Memory (HBM) chips, a specialized form of memory necessary for the latest, most powerful processors from companies like Nvidia (NVDA).
Micron is now locked in direct competition with its South Korean rivals, SK Hynix and Samsung Electronics (SSNLF), to dominate the supply of these critical HBM chips to AI semiconductor companies. This demand spike is causing rapid and dramatic changes in the memory market. For example, Samsung temporarily stopped announcing contract prices for some memory-chip products last month as spot prices tripled.
Conventional DRAM Prices Skyrocket
The immense pressure from AI demand is not just affecting HBM chips; it is also lifting prices across the conventional memory market. Research firm TrendForce projects that conventional DRAM (dynamic random access memory) prices will rise significantly, increasing between 18% and 23% in the fourth quarter alone.
Micron’s shares have already responded positively to the industry shift, having more than doubled this year so far. The move to dump the consumer business entirely signals that the company views the future, and its highest margin potential, as squarely within the AI sector.
Is Micron a Good Stock to Buy?
Analyst sentiment toward Micron (MU) is overwhelmingly bullish, rated as a Strong Buy based on the consensus of 29 analysts tracked in the last three months. Of these ratings, 26 analysts call it a Buy, three recommend a Hold, and zero recommend a Sell.
The average 12-month MU price target sits at $233.32. This target implies a minimal downside potential of 0.36% from the last price.
