Micron Surges as Wall Street Bets Big on AI

Micron ( (MU) ) has risen by 11.97%. Read on to learn why.

Micron shares climbed 11.97% over the past week as Wall Street dramatically raised its expectations for the memory-chip maker on the back of blowout quarterly results and surging AI-related demand. The company’s latest earnings smashed forecasts, with adjusted profit of $4.78 per share and revenue jumping 56.6% year-on-year to $13.64 billion, driven by higher DRAM and NAND prices and tighter cost control. That strong performance, combined with record gross margin guidance of about 68%, has reinforced the view that Micron is in the middle of a powerful upcycle rather than a short-lived rebound.

Several top analysts sharply boosted their price targets, fueling the rally. Bank of America’s Vivek Arya upgraded Micron to Buy and lifted his target from $250 to $300, arguing the company is entering a “stronger for longer” cycle powered by AI workloads that require high-bandwidth memory and advanced DRAM. Rosenblatt’s Kevin Cassidy went even further, raising his target from $300 to $500, while Baird’s Tristan Gerra increased his from $235 to $443 and named Micron a top large‑cap idea. These analysts now see Micron’s earnings power peaking between roughly $36 and $42 per share in fiscal 2027, many times past cycle highs, as demand for data‑center and AI memory continues to outpace supply.

Underlying this renewed enthusiasm is Micron’s tightening supply‑demand balance and growing role at the center of the AI data‑center boom. Its cloud memory business has doubled year over year, data‑center NAND sales now exceed $1 billion per quarter, and its high‑bandwidth memory is effectively sold out through 2026 under multi‑year deals, giving the company pricing power and better visibility than in past cycles. Free cash flow is already running at about $4 billion per quarter and could climb further, setting the stage for larger share buybacks once CHIPS Act restrictions ease. While analysts caution that future capacity expansions and potential price normalization could reintroduce volatility, the stock’s 11.97% weekly gain reflects growing conviction that Micron is evolving from a purely cyclical memory play into a core long‑term beneficiary of the AI era.