Micron Technology (MU) Stock Surges 4.7% on Record Revenue and AI-Driven Expansion

Another chipmaker catches the AI wave—and Wall Street throws a party.

Micron Technology just posted numbers that made traders forget about interest rates for a whole afternoon. The stock ripped higher, fueled by a simple formula: record revenue plus a strategic pivot everyone saw coming.

The AI Pivot Pays Off

Forget the old memory market. Micron's latest playbook reads like an AI spec sheet. They're not just selling components; they're building the foundational layer for data centers scrambling to handle generative models. It's a high-stakes, high-margin shift that investors are betting on hard.

Beyond the Quarterly Hype

The real story isn't a single earnings beat. It's the roadmap. The company is channeling capital into production lines specifically tuned for AI workloads. That means faster, denser memory architectures designed not for your laptop, but for the servers training the next large language model.

It's a classic tech sector move—pivot to the buzzword, watch the multiples expand. And for now, the strategy is delivering. The revenue record proves demand is there, and the 4.7% stock jump proves confidence is, too. Whether it's sustainable or just another cycle depends on if the AI spend is a bubble or a permanent shift. Either way, someone's getting paid today.

TLDRs;

• Micron shares jump 4.7% after record revenue, fueled by AI-focused memory growth.
• Company exits Crucial consumer brand to concentrate on high-margin AI products.
• Fiscal Q4 revenue of $11.32B exceeds expectations, with AI products driving massive growth.
• HBM capacity sold out through 2026; analysts raise price targets up to $338.

Micron Technology (NASDAQ: MU) continued its remarkable 2025 rally, at $237.22, up approximately 4.7% on the day following analyst upgrades and price-target hikes.

The stock has surged between 170% and 180% year-to-date, cementing its status as one of the standout AI beneficiaries of the year. Investor confidence reflects Micron’s strategic focus on high-bandwidth memory (HBM) and AI data-center solutions, which are driving both revenue growth and Wall Street optimism.

Micron Technology, Inc., MU

Crucial Exit Sharpens AI Focus

On December 3, Micron announced the closure of its consumer-focused Crucial memory and SSD business, with global shipments ending by February 2026. Although Crucial represented a relatively small, lower-margin segment, the exit allows Micron to reallocate resources toward high-performance DRAM and HBM products, aligning with a broader AI memory supercycle.

Analysts note that global supply for cutting-edge memory is tight, and Micron’s decision to prioritize high-margin, strategic data-center customers is designed to maximize both growth and profitability.

Record Q4 and Fiscal 2025 Performance

Fiscal Q4 2025 results highlighted Micron’s AI-driven momentum, with revenue of $11.32 billion, up 46.1% year-over-year, surpassing consensus estimates of $11.05 billion. EPS came in at $3.03, compared with the $2.86 forecast and $1.18 a year earlier.

Full-year revenue reached $37.4 billion, up nearly 49% from FY24, driven primarily by AI-centric products including HBM, high-capacity DIMMs, and low-power server DRAM. Data-center revenue jumped 137% to $20.75 billion, representing 56% of total sales.

Guidance for Q1 FY26 anticipates revenue of $12.5 billion and non-GAAP EPS of $3.60–$3.90, suggesting robust multi-year growth fueled by AI infrastructure adoption.

HBM Demand and Analyst Optimism

Micron’s HBM3E inventory is sold out through 2026, with HBM4 development already in the pipeline. Rising DRAM and NAND prices, 20–70% higher than earlier this year, reflect tight supply and AI-driven demand.

Deep integration with Nvidia and AMD strengthens Micron’s position as a leading memory supplier for AI servers. Analysts have responded positively, lifting price targets: Morgan Stanley at $338, Rosenblatt at $300, and UBS at $275.

While Wall Street remains bullish, some caution that valuations are elevated relative to historical multiples, and investors should monitor potential overcapacity, AI demand normalization, and competitive pressures from Samsung and SK hynix.

Bottom Line

Micron Technology sits at the center of an AI-driven memory supercycle, benefiting from strong earnings, sold-out HBM capacity, and a strategic shift toward high-margin data-center products. With robust analyst support and rising price targets, the company remains a high-conviction AI infrastructure play.

However, historical memory cyclicality and elevated valuations suggest that investors should weigh the stock’s potential against inherent risks as the market moves into 2026.