Micron Technology (MU) shares staged an extraordinary rally, jumping over 15% on Friday alone to close at $746.81 and capping a nearly 38% weekly gain—the best since December 2008. The surge pushed Micron’s market capitalization past $840 billion, overtaking JPMorgan Chase and making it the 12th-largest U.S. company.
The rally was ignited by a sector-wide AI chipmaker rebound, with DA Davidson issuing a Street-high price target of $1,000, citing Micron’s dominant position in the AI memory supercycle. Micron’s high-bandwidth memory capacity is completely sold out through 2026, while the company recently launched a record 245TB SSD aimed at hyperscale AI deployments.
Underpinning the move is a severe global shortage of DRAM and NAND flash memory. Prices surged dramatically: DRAM jumped 57% in April compared to Q1 averages, and NAND prices soared 65–70%. A Bernstein note had earlier warned that such price spikes could force OEMs to cut purchases, potentially slowing momentum into Q2 2026, but the firm still maintains a Buy rating and expects earnings of nearly $19 per share in the May quarter.
With over 90% of the world’s DRAM concentrated among Micron, Samsung, and SK Hynix, supply tightness gives memory makers unprecedented pricing power. Hyperscalers are pouring an estimated $1 trillion into AI data center capex by next year, according to Bank of America and Evercore, fueling insatiable demand. Retail interest has also surged, with net buying hitting a two-year high. Despite some caution about cyclicality, Wall Street increasingly treats Micron as a high-growth AI infrastructure play rather than a traditional chip stock.
