Semiconductor and AI infrastructure stocks extended their rebound this week as investors focused on tight memory supply and rapidly expanding artificial intelligence data center demand. Micron Technology shares jumped about 5% on Thursday, trading near $905, while Dell Technologies climbed 9.9% on Wednesday to close at $484.49 after Super Micro Computer issued a stronger-than-expected fiscal 2027 revenue outlook.
Micron’s supply constraints support pricing. Micron said it can currently satisfy only about half of data center customer demand, and it expects tight conditions for high-bandwidth memory and advanced DRAM to continue into 2027. Executives told the KeyBanc Technology Leadership Forum that AI servers require large amounts of high-bandwidth memory, adding another demand source alongside traditional computing and mobile markets. Micron has signed Strategic Customer Agreements covering roughly 40% to 50% of expected revenue through 2030, giving the company greater visibility, though predetermined pricing could limit upside if spot prices rise faster than expected. The company is also increasing domestic manufacturing investment to about $250 billion, with new facilities planned in Idaho and New York.
Wall Street remains broadly positive on Micron. Among 30 analysts, 29 rate the stock a Buy and one maintains a Hold, with no Sell ratings. The average 12-month price target is $1,569.07, roughly 72% above recent levels. Targets range from $1,100 to $2,200. Micron shares reached an all-time high of $1,255 on June 25 before falling about 25% through July and early August on concerns over Chinese memory competition, geopolitical uncertainty and executive share sales.
Dell’s AI server momentum accelerates. Dell’s rally followed Super Micro’s fiscal 2027 guidance of $65 billion to $72 billion, well above the $52.5 billion consensus. Super Micro stock jumped more than 14%, lifting sentiment across the AI server sector. Dell entered its current fiscal year with a $43 billion backlog of AI-optimized server orders. In its most recent quarter, Dell reported revenue of $43.84 billion, up 87.5% year over year and above estimates of $35.74 billion. Earnings per share of $4.86 beat the $2.96 consensus. AI server revenue surged 757% in the quarter. Dell guided to full-year fiscal 2027 EPS of $17.90.
Analysts have raised Dell targets. Citigroup lifted its target from $475 to $515, Sanford C. Bernstein raised its target from $280 to $500, and HSBC and CLSA upgraded the stock. The current consensus is a Moderate Buy with an average target of $492.43. Insider selling remains a watched risk: insiders sold 3.43 million shares worth about $1.45 billion over the past three months. Institutional investors hold 76.37% of Dell shares.
