Micron Stock Surges as AI Memory Boom Accelerates

Micron ( (MU) ) has risen by 7.15%. Read on to learn why.

Micron shares climbed 7.15% over the past week, extending an already spectacular run as investors doubled down on the stock’s role at the heart of the AI boom. The move followed a series of bullish analyst notes that reiterated Buy ratings and lifted price targets toward the $300–$330 range, backed by a Strong Buy consensus on Wall Street and double‑digit upside implied by average targets. Despite the rally and Micron’s all‑time‑high valuation, many analysts argue the shares still don’t fully reflect its strengthening position in the AI supply chain.

The main fuel for the advance has been Micron’s blowout fiscal Q1 2026 results and outlook, which underscored how AI is transforming its business. Revenue jumped to record levels on the back of surging demand for high‑bandwidth memory (HBM) and advanced DRAM used in AI data centers, with margins and free cash flow also hitting new highs. Management’s guidance points to even faster growth ahead, as the company expects revenue in the next quarter to more than double year on year while keeping profitability at historically elevated levels.

Investors are also responding to Micron’s tightening grip on a critical chokepoint in AI infrastructure: cutting‑edge memory supply. The company has effectively sold out its HBM capacity for 2026, including next‑generation HBM4, and says it can currently meet only about half to two‑thirds of some key customers’ needs, signaling an undersupplied market that should support strong pricing through at least 2027. With AI‑driven demand expected to grow for years and the memory industry constrained by limited new capacity, the market is increasingly viewing Micron not as a cyclical commodity play but as a core, long‑term AI infrastructure holding—helping push the stock higher this week.