Micron (MU) Stock Soars 14% as Memory Shortage Drives Massive Rally

Key Takeaways

• Micron shares soared more than 14% Friday amid a broad rally in AI semiconductor stocks
• DA Davidson established a new Street-leading $1,000 price target for the memory chipmaker
• The company’s high-bandwidth memory production is completely sold out until 2026
• DRAM pricing surged 57% in April versus Q1 levels; NAND jumped 65–70%
• Bernstein raised near-term demand questions while keeping its Buy recommendation

Micron (MU) shares exploded more than 14% higher on Friday, bouncing back dramatically from Thursday’s 3% decline that followed a cautionary Bernstein research note highlighting challenges in the computer memory spot market.

Micron Technology, Inc., MU

The powerful rebound occurred as market participants returned to AI chip stocks in force, with Micron benefiting from renewed enthusiasm across the semiconductor sector.

DA Davidson ignited additional momentum by establishing a $1,000 price target on Micron—the highest on Wall Street. The investment firm pointed to Micron’s strategic positioning within the AI memory supercycle as the primary catalyst.

Micron’s production capacity for high-bandwidth memory has been completely reserved through 2026. The chipmaker also recently unveiled a groundbreaking 245TB solid-state drive, highlighting its aggressive expansion into AI infrastructure markets.

Bernstein’s Thursday research had temporarily rattled investors by highlighting supply constraints in both DRAM and NAND flash memory sectors. The firm’s concern centered on pricing climbing to levels that forced original equipment manufacturers and module producers to reduce their purchasing activity.

Such demand softness could lead price appreciation to “decelerate notably” through Q2 2026, Bernstein suggested, potentially impacting Micron’s near-term earnings trajectory.

Pricing Data Paints Bullish Picture

Despite the warnings, actual market pricing tells a compelling story. DRAM costs skyrocketed 57% in April when measured against first-quarter benchmarks. NAND pricing climbed between 65% and 70% during the same timeframe.

Bernstein maintains its Buy rating on Micron and is anticipated to increase its current $510 price target based on the firm’s optimistic assessment of the company’s future prospects.

Analysts on Wall Street are currently projecting Micron will deliver approximately $19 in earnings per share for the May quarter. Revenue is anticipated to surge 260% year-over-year to $33.5 billion.

Those projections, according to Bernstein, should remain intact even if certain customers reduce purchases in the second quarter, as well-capitalized buyers will continue acquiring inventory.

Tight Supply Underpins Growth Narrative

The fundamental driver behind Micron’s current momentum is constrained supply. Nvidia, AMD, and other artificial intelligence chipmakers are shipping processors at a pace that outstrips available memory supply.

Buyers are engaged in competitive bidding for existing inventory, pushing pricing progressively higher. This environment creates favorable conditions for Micron regardless of temporary market volatility.

Micron’s year-to-date performance shows a remarkable 126.66% gain, demonstrating how significantly the market has revalued the stock as AI infrastructure investment has intensified.

The equity’s technical outlook currently signals a Buy, with typical daily volume averaging approximately 42 million shares.

Friday’s trading session pushed the stock to $735.44, representing an $88.81 gain for the day, with an intraday peak of $735.68.

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