Micron (MU) Shares Skyrocket, What You Need To Know

What Happened?

Shares of memory chips maker Micron (NYSE:MU) jumped 8.1% in the morning session after Bernstein SocGen Group raised its price target on the company to $330 from $270, citing strong demand for artificial intelligence applications. 

The research firm maintained its Outperform rating on the stock. This optimism was rooted in expectations that prices for DRAM, a type of computer memory, would continue to rise from the start of 2026. The primary driver for this was described as ballooning data center demand fueled by AI, while the expansion of memory supply remained constrained. Other reports echoed this sentiment, noting the market's focus on the insatiable demand for data center storage. This demand was also linked to the potential creation of a $100 billion high-bandwidth market by 2028, with AI-related stocks providing significant momentum in the market.

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What Is The Market Telling Us

Micron’s shares are extremely volatile and have had 38 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 14 days ago when the stock gained 7.3% on the news that the stock's positive momentum continued as the company reported record-breaking first-quarter fiscal 2026 results and provided a significantly stronger-than-expected forecast for the second quarter, fueled by soaring demand for its artificial intelligence (AI) memory chips. 

Micron's revenue for the first quarter reached a record $13.6 billion, a 57% increase year-over-year, beating analysts' consensus of $13.0 billion. Earnings per share came in at $4.78. The company's outlook was even more impressive, with an expected revenue of about $18.7 billion for the next quarter, far surpassing the $14.3 billion Wall Street had anticipated. The strong performance was driven by booming demand for memory products, especially high-bandwidth memory, essential for AI applications. The company also indicated that its high-end memory supply for 2026 was already fully booked, with the broader industry facing tight supply constraints. This combination of high demand and limited supply led to the stock hitting an all-time high.

Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $4,140.

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