Micron Stock: Why Investors Are Bullish in 2025

• Micron’s Blowout Quarter: What’s Driving the Rally?
• Why AI Chips Are Sold Out Until 2026
• Wall Street’s "Supercycle" Bet
• Should You Buy Micron Stock Now?
• FAQs: Micron’s AI Boom Explained

Micron Technology is proving that the AI boom is far from over. With earnings smashing expectations and a sky-high revenue forecast, the chipmaker is silencing doubts about sustained demand. Analysts are scrambling to raise price targets, and Micron faces a rare "problem": its HBM production is sold out through 2026. This article dives into the numbers, the AI-driven demand surge, and whether now’s the time to buy—or cash out.

Micron’s Blowout Quarter: What’s Driving the Rally?

Micron just dropped its Q1 2026 earnings, and the numbers are staggering. Revenue jumped 57% year-over-year to $13.64 billion, but the real story is the guidance: $18.7 billion projected for Q2. That’s not just growth—it’s acceleration in a sector known for volatility. Even more impressive? Gross margins are expected to hit a record 68%, proving Micron isn’t just moving volume—it’s commanding premium prices. As one trader put it, "They’re printing money with HBM."

Why AI Chips Are Sold Out Until 2026

High Bandwidth Memory (HBM), the backbone of AI systems, is in such demand that Micron’s entire 2025–2026 production capacity is already booked—including next-gen HBM4. The company admits it can only fulfill 50–60% of orders from top clients. This artificial scarcity lets Micron flex serious pricing power in a market it predicts will hit $100 billion by 2028. "It’s a gold rush," says BTCC analyst Mark Lee, "and Micron owns the shovels."

Wall Street’s "Supercycle" Bet

Analysts are losing their cool. Rosenblatt hiked its price target to $500, calling this an "AI memory supercycle" unlike any past boom. Morgan Stanley and JPMorgan followed, targeting $350. The stock, now at €223.30 (just shy of its €225.55 high), is up 162% year-to-date. "This isn’t hype—it’s math," argues Lee. "When demand triples and supply stays flat, prices go parabolic."

Should You Buy Micron Stock Now?

With order books packed and tech leadership in HBM, Micron’s 2026 roadmap looks locked in. But at these valuations? Some traders are hedging. "I’m long but keeping stops tight," admits a hedge fund manager who asked not to be named. The playbook here is simple: shrinking supply + exploding demand = margin nirvana. Whether that’s priced in already? That’s the $500 question.

FAQs: Micron’s AI Boom Explained

Why is Micron stock soaring?

Record earnings, sold-out HBM capacity through 2026, and AI-driven demand are fueling the rally.

Is Micron overvalued now?

At 68% gross margins and 162% YTD gains, some say yes—but Rosenblatt’s $500 target suggests 120% upside.

What’s the biggest risk?

An AI demand slowdown or HBM competitors (like Samsung) catching up could pressure margins.