Why Micron (MU) Stock Is Trading Up Today

What Happened?

Shares of memory chips maker Micron (NYSE:MU) jumped 4.7% in the afternoon session after the stock extended its positive momentum as a Citi analyst raised the company's price target, citing strong demand for its memory chips driven by the artificial intelligence boom. 

Citigroup analyst Christopher Danely maintained a 'Buy' rating on the stock while increasing the price target to $175 from $150. The move reflects growing confidence in Micron's position as a key beneficiary of the AI revolution. Analysts point to increased demand for dynamic random-access memory (DRAM) chips and high-bandwidth memory (HBM) products, which are essential components for AI infrastructure. The positive analyst action contributed to the stock's recent momentum, which has seen shares reach new all-time highs.

After the initial pop the shares cooled down to $157.48, up 4.6% from previous close.

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What Is The Market Telling Us

Micron’s shares are very volatile and have had 26 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 1 day ago when the stock gained 8.9% on the news that Citi boosted its price target on the stock to $175 from $150, citing strong industry fundamentals ahead of the company's earnings report. 

Micron is up 80.3% since the beginning of the year, and at $157.48 per share, has set a new 52-week high. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $3,212.

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