Micron (MU) Stock Surges Amid AI-Driven Memory Demand Boom
Micron Technology's shares jumped 3% on Friday, extending a 327% annual rally after Amazon's AI infrastructure spending plans signaled robust demand for memory chips. UBS analyst Timothy Arcuri lifted his price target to $450, citing a prolonged memory upcycle despite consumer electronics softness.
DRAM contract prices are projected to spike 62% quarter-over-quarter, with NAND flash memory climbing 40%, as AI data centers strain supply. Shortages may persist until 2027, with UBS forecasting $54 and $75 EPS for 2026 and 2027 respectively. The semiconductor sector's fortunes increasingly hinge on AI's insatiable appetite for high-bandwidth memory.