Micron Stock Jumps Following Reassurance on HBM4 and AI Demand Growth

TLDR

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Micron stock surged by 5-6% after the company reassured investors about its HBM4 production timeline.
The company’s CFO confirmed that Micron is in high-volume production of HBM4, shipping products ahead of schedule.
Analysts raised their price targets for Micron stock, citing strong AI memory demand and the company’s market position.
Micron is benefiting from the growing need for high-bandwidth memory, essential for AI accelerators like Nvidia.
The memory market is experiencing tight supply, with HBM capacity for 2026 already sold out under long-term contracts.

Micron stock (MU) surged by 5-6% on Wednesday after the company reassured investors about its next-generation high-bandwidth memory (HBM4) progress. The rise in the stock price is partly due to management addressing concerns about production delays. Analysts are also driving the momentum with bullish outlooks based on Micron’s position in the AI memory market.

Micron Technology, Inc., MU

Company Clarity on HBM4 Production

Micron’s stock surge follows a statement from the company’s CFO at a Wolfe Research conference in New York. He directly addressed recent doubts about the progress of the HBM4 program, which had been lagging behind rivals like Samsung. The CFO confirmed that Micron is in high-volume production of HBM4, with shipments already underway and increasing this quarter, ahead of the planned timeline.

This statement helped restore confidence in the stock after reports surfaced claiming that Samsung was ahead in the HBM4 race. By clarifying that HBM4 is in production and on track, Micron resolved concerns surrounding its technology and schedule. The CFO’s comments quickly resulted in Micron stock rising by approximately 5.5%, outperforming the broader chip sector and Nasdaq.

Analyst Support for Micron Stock

Following Micron’s reassurance, analysts extended the positive sentiment. Morgan Stanley raised its price target for Micron to $450, citing the company’s strong position in the AI-driven memory market. The firm maintained an Overweight rating on Micron stock, reinforcing the broader trend of analysts turning more optimistic about the company’s prospects.

Other analysts, including those from Mizuho, TD Cowen, and Rosenblatt, have also raised their price targets in recent weeks. These analysts cite a stronger outlook for HBM economics and DRAM pricing power driven by the increasing demand for AI memory. This positive analyst coverage is contributing to the upward momentum in Micron’s stock price.

AI Memory Market and Micron’s Strategic Position

The broader trend in the AI memory market is also playing a role in the surge of Micron stock. High-bandwidth memory (HBM), which is essential for AI chips, is in high demand. HBM is crucial for AI accelerators from companies like Nvidia, and this growing demand is squeezing memory supply across the market.

Reports indicate that HBM capacity for 2026 is largely sold out under long-term contracts. As a result, DRAM prices could see a 20-30% increase, further benefiting companies like Micron. Micron is strategically positioning itself to capitalize on this demand, with new capacity investments and partnerships with foundry companies like Powerchip (PSMC) to scale up output.

Micron’s focus on expanding its manufacturing footprint is evident through plans for new fabs and NAND investments. These strategic moves position the company well to meet the growing demand for AI-grade memory.

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