Micron Shares Surge on AI-Driven Demand, Analysts Bullish on DRAM Market
Micron Technology shares continue their upward trajectory, fueled by unprecedented demand for memory chips in the AI sector. The stock has soared 177% since April lows, buoyed by record earnings and strong guidance that exceeded expectations.
Citi analyst Christopher Danely identifies DRAM as the next critical component in the AI supply chain, drawing parallels to the trajectories of NVIDIA, AMD, and Broadcom. "We're seeing AI companies aggressively securing DRAM supply," Danely notes, predicting sustained price increases that could push Micron's gross margins to previous peaks.
The memory chip Maker stands as a clear beneficiary of the AI boom, with its products becoming increasingly vital for training and running large language models. Market dynamics suggest this demand surge shows no signs of abating, creating favorable conditions for continued outperformance.
