Micron Technology (MU) surged nearly 10% on Wednesday, standing out as one of the few bright spots in an otherwise flat market. Trading volume hit 47.4 million shares—47% above the three-month average. Rival memory names also rallied, with Western Digital (WDC) up 4.26% and Seagate Technology (STX) gaining 2.78%. Meanwhile, the S&P 500 dipped 0.03% and the Nasdaq Composite slipped 0.16%.
The rally was fueled by dual catalysts from Wall Street and the supply chain.
Deutsche Bank reiterated its Buy rating on Micron and raised its one-year price target to $500 from $300, citing strong demand for high-bandwidth memory (HBM) used in AI servers. The bank noted that Micron’s improving margin profile, driven by AI-specific memory products, is not yet fully reflected in the stock. Even more bullish views are circulating: one analyst has set a Street-high target of $600, based on the fact that Micron has already sold out its entire HBM capacity for fiscal 2026.
The bullish case isn’t coming only from the sell side. Samsung Electronics’ chip division CTO, Song Jai-hyuk, told attendees at the Semicon trade show that robust demand for memory chips is “highly likely to continue through 2026 and into 2027.” In an industry historically defined by violent boom-bust cycles, the comment signals that the current AI-driven memory upcycle may have more room to run.
Micron management previously disclosed that the HBM market is expected to grow from roughly $35 billion in 2025 to $100 billion by 2028—a figure larger than the entire DRAM market just five years ago. Crucially, HBM requires three to four times the wafer capacity of traditional DRAM, meaning that surging demand is simultaneously constraining supply.
Analysts expect Micron to post EPS of $33.51 in fiscal 2026 and $42.97 in fiscal 2027. The cumulative two-year profit of $76.50 nearly matches Micron’s stock price of around $90 back in February 2021, when the company was still viewed as a cyclical commodity play. Today, AI has fundamentally revalued the business.
Over the past five years, Micron shares have gained 372%, compounding at an annualized rate of 36.3%. By comparison, the S&P 500’s annualized return over the same period is below 10%. A $100 investment in Micron five years ago would now be worth $472.
Long-term investors are now watching whether Micron can translate its sold‑out HBM backlog into sustained margin expansion. The company has committed $10 billion to a new megafab in New York, with additional projects under way in Singapore and Taiwan. Wall Street is watching closely to see whether Micron can finally break free from the industry’s historical boom‑and‑bust cycle.
For now, the cycle shows no signs of peaking.
