{"id":4699,"date":"2026-05-04T15:16:29","date_gmt":"2026-05-04T15:16:29","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=4699"},"modified":"2026-05-04T15:16:29","modified_gmt":"2026-05-04T15:16:29","slug":"micron-stock-surges-9-how-high-can-it-go","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=4699","title":{"rendered":"Micron stock surges 9%: how high can it go?"},"content":{"rendered":"
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Shares of Micron Technology surged 9.3% during the latest session, reaching a new 52-week high of $592, as bullish analyst revisions and strong demand signals from hyperscalers fueled momentum.<\/p>\n

The rally comes amid a wave of price target increases on Wall Street, with DA Davidson assigning a Buy rating and a $1,000 price target \u2014 the highest on the Street. <\/p>\n

The firm argued that artificial intelligence is driving a prolonged memory cycle, supported by a reinforcing loop between compute deployment and demand.<\/p>\n

Micron\u2019s outperformance stood out against a relatively muted broader market backdrop. The S&P 500 rose just 0.04%, while the Nasdaq Composite gained 0.2%, highlighting the stock\u2019s strong relative move.<\/p>\n

Goldman Sachs noted that Micron alone accounts for 51% of all S&P 500 earnings per share revisions since the onset of the Middle East conflict, underscoring its growing importance in the current earnings cycle.<\/p>\n

AI-driven memory demand fuels growth outlook<\/h2>\n

The surge in Micron\u2019s stock is closely tied to accelerating demand for High Bandwidth Memory (HBM), a key component in AI systems. <\/p>\n

The company has indicated that its HBM products are sold out for the next several quarters, reflecting tight supply conditions.<\/p>\n

Demand signals from major cloud players have reinforced this trend. <\/p>\n

Executives at Meta, Microsoft, and Amazon have highlighted memory pricing as a major cost driver in AI infrastructure buildouts. <\/p>\n

Meta\u2019s CFO cited “higher component pricing” as the key driver behind its raised 2026 capital expenditure, Microsoft quantified $25 billion in impact from higher component costs, and Amazon\u2019s CEO said memory costs have “skyrocketed” as supply struggles to keep pace with demand.<\/p>\n

On the supply side, industry constraints remain a defining factor. <\/p>\n

Samsung has flagged the ongoing memory chip shortage<\/a>, while Tim Cook warned of an extended memory crunch. <\/p>\n

Micron is one of only three global suppliers of HBM, alongside SK Hynix and Samsung.<\/p>\n

Micron CEO Sanjay Mehrotra recently noted that the expansion of AI inference is increasing demand for tokens requiring faster, higher-capacity memory, further accelerating demand for DRAM and NAND products.<\/p>\n

Strong earnings and tight supply reinforce bullish case<\/h2>\n

Micron\u2019s recent financial performance has added to investor confidence. <\/p>\n

In its fiscal second quarter of 2026, the company reported adjusted earnings per share of $12.20, beating consensus estimates of $9.21 by 32.7%. <\/p>\n

Revenue came in at $23.9 billion, exceeding expectations of $20.0 billion by 19.5%.<\/p>\n

Looking ahead, guidance for the third quarter calls for revenue of $33.5 billion, gross margins of 81%, and earnings per share of $19.15. <\/p>\n

Analysts expect sales to grow 200% year over year and earnings to rise 600% this fiscal year, driven by AI-related demand.<\/p>\n

Despite the strong outlook, supply constraints are expected to persist. <\/p>\n

Analysts project tight memory supply could extend through 2027 or even 2028 due to long fabrication build cycles, supporting pricing power for producers.<\/p>\n

Micron is also expanding its product roadmap, including next-generation HBM4 and HBM4E, while increasing capital expenditure to boost manufacturing capacity. <\/p>\n

However, meaningful new supply is not expected until late 2027.<\/p>\n

Technically, the stock remains in a strong uptrend, trading well above key moving averages. <\/p>\n

The relative strength index stands at 71.66, indicating overbought conditions and suggesting that recent buying activity has been aggressive.<\/p>\n<\/p>\n

The post Micron stock surges 9%: how high can it go?<\/a> appeared first on Invezz<\/a><\/p>\n

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Shares of Micron Technology surged 9.3% during the latest session, reaching a new 52-week high of $592, as bullish analyst revisions and strong demand signals from hyperscalers fueled momentum.The rally comes amid a wave of price target increases on Wall Street, with DA Davidson assigning a Buy rating and a $1,000 price target \u2014 the…<\/p>\n","protected":false},"author":1,"featured_media":4700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4699"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4699\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/4700"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}