Micron Technology Rallies on Bullish Analyst Note and Oracle’s AI-Driven Demand

Micron Technology's shares surged as much as 5.2% on Wednesday, settling at a 3.5% gain by market close. The rally followed a bullish analyst note predicting sustained undersupply in the memory chip market through 2026. DRAM demand growth is expected to outpace supply by 1.8 percentage points, while NAND flash—previously oversupplied—could see demand exceed supply by four points.

Oracle's explosive guidance further fueled optimism. The company disclosed a 359% jump in remaining performance obligations to $455 billion, with cloud infrastructure revenue projected to skyrocket from $18 billion this year to $144 billion by 2030. This AI-driven demand aligns with Citi's analysis, which highlighted artificial intelligence inference as a key growth driver for memory chips.