Micron Stock Surges: Memory Chip Giant Defies Market Gravity
Another day, another semiconductor stock making moves while traditional investors scratch their heads. Micron's shares just ripped higher—because when memory prices climb, this chipmaker prints money faster than the Fed.
Supply, Demand, and Pure Profit
Market cycles turn, inventories tighten, and suddenly everyone needs memory chips again. AI workloads, data centers, next-gen devices—they all hunger for DRAM and NAND. And Micron? They're serving the buffet.
Tech sector momentum meets cyclical upswing. Short-term traders chase it, long-term holders grin. Classic semiconductor play—brutal downturns, explosive comebacks. Just another day in the volatile world of chip stocks.
Because sometimes the market actually rewards companies that make real things—not just promises and PowerPoint decks.
Image source: Getty Images.
A rising tide in memory chips
SK Hynix, based on South Korea, jumped 7% today after it said this morning that it completed development of HBM4, its next-generation memory product for ultra-high performance AI.
Touting its capabilities, the company said that HBM4's bandwidth has doubled, and its power efficiency improved 40% compared with the previous generation. HBM4 marks its sixth generation of HBM.
While that development might be seen as bad news for Micron, the memory chip sector is subject to many of the same supply and demand trends. Micron has already sold out its HBM capacity for the year, so the news shouldn't have an immediate impact on its results, but it could help lift prices in the industry.
What's next for Micron?
Today's gain marks the second day in a row of upward momentum for Micron, as the stock moved higher yesterday afterraised its price target to $175 and reaffirmed its buy rating, noting that pricing for DRAM and NAND chips are trending higher.
Micron will report fiscal fourth-quarter earnings on Sept. 23, with analysts expecting revenue to jump 43% to $11.1 billion and for adjusted earnings per share to more than double from $1.18 to $2.85.
If the company tops those estimates, the stock could soar as Micron still looks cheap at a forward P/E of just 12.
