Micron Technology Shares Surge to Record Peak on AI Optimism and Supply Dynamics

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Micron Technology Inc. saw its stock price ascend to an unprecedented high during Wednesday's trading session. The semiconductor manufacturer's shares advanced approximately 4.5%, closing at $263.71. This milestone was propelled by a combination of sharply rising memory chip prices and a series of aggressive analyst upgrades from major financial institutions, all pointing to the company's strategic positioning to capitalize on the artificial intelligence boom.

All eyes are now on the company's scheduled earnings release for the first quarter of fiscal year 2026, set for Tuesday, December 17. Consensus estimates project revenue of $12.7 billion, representing a year-over-year increase of 46%. Earnings per share are anticipated to reach $3.83, more than double the figure from the prior-year period. Some analysts, including those at Goldman Sachs, believe these forecasts may be conservative; they project revenue of $13.2 billion and EPS of $4.15. Market technicians note that the breach of the $260 resistance level confirms a robust upward trend, though the elevated Relative Strength Index (RSI) suggests flawless quarterly results will be necessary to sustain the momentum.

Wall Street Revises Targets Upward

A coordinated wave of price target increases swept through Wall Street research desks. Citigroup kicked off the activity by raising its target from $275 to $300 while reiterating a Buy rating. Analyst Christopher Danely cited "unprecedented" price increases for DRAM memory chips, forecasting a 50% sequential rise in DRAM prices for the fourth quarter of calendar year 2025.

Deutsche Bank followed suit on the same day, lifting its price objective from $200 to $280. Their analysts project fiscal year 2026 earnings per share of $20.63 on revenue approaching $60 billion. HSBC initiated coverage with the most bullish stance among its peers, assigning a $330 price target.

These optimistic assessments find support in market data. BNP Paribas analyst Karl Ackerman characterized the environment as a "historic upcycle," noting that spot prices for consumer DRAM had surged 408% year-over-year in November 2025, with NAND flash memory prices up 165%.

Strategic Pivot to High-Margin AI Products

The rally is underpinned by a fundamental strategic shift within the company. Micron is decisively moving away from the competitive consumer mass market and redirecting its focus toward high-margin products for artificial intelligence and data centers. A key component of this plan is the intended cessation of its consumer-focused Crucial business in February 2026. The freed-up production capacity will be entirely dedicated to manufacturing High Bandwidth Memory (HBM).

HBM is a critical enabler for AI accelerator chips, such as those produced by NVIDIA, and current demand vastly outstrips supply. Micron's HBM production is effectively sold out through 2026. Analysts expect this strategic reallocation of capacity from consumer to enterprise-grade memory to significantly boost gross margins. Concurrently, the company is making substantial investments in new manufacturing capabilities, including a $9.6 billion facility in Japan slated to begin HBM chip production in 2028.