Micron Technology Inc. (NASDAQ:MU) stock rose Friday as investors leaned further into the AI memory trade, supported by the tightening supply of next-generation DRAM used in high-performance computing.
Institutional inflows and bullish analyst commentary continue to reinforce expectations that demand for AI-focused memory—particularly high-bandwidth memory—could outpace supply well into the next decade.
That dynamic is seen sustaining pricing power and supporting Micron's longer-term growth outlook even as sentiment across the broader technology sector remains mixed.
Micron has also drawn attention following notable institutional positioning. David Tepper's Appaloosa Management increased its Micron stake by 250% while trimming exposure to Nvidia Corp. (NASDAQ:NVDA) and Amazon.com, Inc. (NASDAQ:AMZN).
Analyst Sees Supply Constraints Supporting Pricing
JPMorgan analyst Harlan Sur said AI-driven demand for DRAM, particularly high-bandwidth memory (HBM), is expected to continue exceeding supply beyond 2026, which could help sustain memory pricing and support Micron's earnings outlook.
Sur reiterated an Overweight rating and a $350 price forecast. Sur added that Micron remains constrained in its ability to grow supply and meet incremental customer demand because it lacks available clean-room space.
Even so, he said node transitions, production efficiency improvements, and accelerated yield ramps should collectively drive at least 20% growth in bit shipments for both DRAM and NAND in calendar 2026.
Micron shares have gained more than 332% over the past 12 months, compared with a 61% rise in the PHLX Semiconductor Index.
Over the last three months, the stock has advanced more than 106%, exceeding the index's 29% gain. The Nasdaq 100 Index rose over 15% in the past year and 3% over the three-month period.
MU Price Action: Micron Technology shares were up 1.70% at $424.43 at the time of publication on Friday. The stock is approaching its 52-week high of $455.50, according to Benzinga Pro data.
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