Micron Stock Surges to Record High on AI Demand and Supply Constraints

Micron US5951121038

Shares of Micron Technology have catapulted to an unprecedented peak, surpassing $315 in early 2026 trading. This landmark rally, which included a single-day surge exceeding 10%, is fueled by a powerful market dynamic: explosive demand for artificial intelligence (AI) memory components is colliding with severely limited production capacity.

The company's fundamental performance underscores the bullish sentiment. For its fiscal first quarter of 2026, Micron delivered results that handily beat market projections:
* Revenue reached $13.64 billion, ahead of the $12.62 billion consensus.
* Earnings per share came in at $4.78, significantly above the $3.77 forecast.
* Management's guidance for the second quarter of 2026 points to EPS between $8.22 and $8.62.

A critical data point reveals the intensity of the current cycle: Micron’s entire production capacity for High Bandwidth Memory (HBM)—a specialized chip essential for AI systems—is already sold out for the 2026 calendar year. Major clients, including Nvidia, are effectively securing supply directly from the fabrication plant.

Analyst Upgrades Fuel the Rally

The recent price acceleration was triggered by a major reassessment from research firm Bernstein. Analysts there dramatically raised their price target on Micron stock from $270 to $330, citing "rapidly increasing memory prices" driven by the persistent AI boom.

Micron’s competitive position appears uniquely advantageous. While rivals grapple with efficiency challenges, the company holds significant pricing power. Demand for HBM continues to outstrip available supply by a wide margin.

Bernstein is not alone in its optimistic view. Wolfe Research promptly followed, elevating its price target to $350. On Wall Street, the consensus is shifting as institutional investors, driven by fear of missing a major industry upcycle, continue to build positions despite record valuation levels.

Technical Indicators Show Extreme Momentum

From a chart perspective, the stock is trading in uncharted territory. The breakthrough of the psychologically significant $300 threshold was executed with heavy trading volume. The share price now stands more than 110% above its 200-day moving average, a clear signal of powerful upward momentum.

As the year progresses, the market is pricing in a scenario where Micron dictates terms within the memory sector. The coming weeks will determine whether current valuations are sustainable or if a period of technical consolidation lies ahead.