Micron (MU) Stock Soars 14% as Memory Shortage Drives Massive Rally
The powerful rebound occurred as market participants returned to AI chip stocks in force, with Micron benefiting from renewed enthusiasm across the semiconductor sector. DA Davidson ignited additional momentum by establishing a $1,000 price target on Micron—the highest on Wall Street. The investment firm pointed to Microns strategic positioning within the AI memory supercycle as the primary catalyst. Microns production capacity for high-bandwidth memory has been completely reserved through 2026. The chipmaker also recently unveiled a groundbreaking 245TB solid-state drive, highlighting its aggressive expansion into AI infrastructure markets. Bernstein‘s Thursday research had temporarily rattled investors by highlighting supply constraints in both DRAM and NAND flash memory sectors. The firm’s concern centered on pricing climbing to levels that forced original equipment manufacturers and module producers to reduce their purchasing activity. Such demand softness could lead price appreciation to “decelerate notably” through Q2 2026, Bernstein suggested, potentially impacting Microns near-term earnings trajectory. Pricing Data Paints Bullish Picture Despite the warnings, actual market pricing tells a compelling story. DRAM costs skyrocketed 57% in April when measured against first-quarter benchmarks. NAND pricing climbed between 65% and 70% during the same timeframe. Bernstein maintains its Buy rating on Micron and is anticipated to increase its current $510 price target based on the