Why Micron Stock Just Exploded: The 2025 Surge Explained

Micron just ripped through resistance levels—traders are scrambling to understand what's fueling this monster rally.

Memory Market Momentum Shifts

Semiconductor demand isn't just recovering—it's exploding. AI workloads, data center expansion, and next-gen computing are driving memory pricing power unlike anything we've seen in years. Forget gradual growth—this is vertical acceleration.

Supply Constraints Meet Insatiable Demand

Production can't keep up. Manufacturing bottlenecks meet enterprise clients fighting for allocation. When scarcity hits tech's foundational layer, pricing follows—aggressively.

Institutional Money Floods In

Hedge funds and asset managers are piling in—not dipping toes, but diving headfirst. This isn't retail speculation; it's smart money positioning for the next cycle. They see margins expanding faster than analysts projected.

Short Squeeze Dynamics Amplify Gains

Bearish bets are getting vaporized. Anyone shorting memory stocks misjudged the cyclical turnaround—now they're fueling the rally as positions unwind.

Tech's relentless evolution waits for no one—least of all skeptical fund managers who still think valuation models from 2022 apply. Meanwhile, Micron's chart prints all-time highs while traditional finance plays catch-up.

Image source: Getty Images.

What Wall Street likes about Micron stock

Micron makes semiconductors for computer memory -- DRAM and NAND flash memory -- and has become popular with the AI crowd for its high-bandwidth memory, or HBM. Yesterday, Wolfe cited "resilient" pricing for DRAM, and noted NAND flash memory demand is growing due to insufficient hard disk drive supply -- supporting its thesis that Micron stock could hit $180 a share within a year.

Susquehanna added positive words about HBM prices holding up through 2026 -- and posited a $200 price target.

Today, it's Wedbush's turn. In addition to agreeing with Susquehanna's price target, Wedbush agrees that HBM will help profits in 2026. Wedbush explains its price target values Micron at 10x "peak" earnings next year, and argues this estimate could be conservative and based on Micron earning lower gross profit margins that it earned at the last cyclical peak in 2018, according to a note on The Fly. 

Translation: Gross margins this time could be better -- and Micron's profits could be, too.

Is Micron stock a buy?

Analysts polled by S&P Global Market Intelligence generally agree that Micron's earnings this year will be 10x what the company earned in 2024, and could double by their peak in 2027, to $13.70 per share.

If "10x forward earnings" is the right price for Micron though, then at today's price of $168 and change, the stock is arguably already overpriced. With Micron stock up 79% over the last year, it may be time to sell.