Micron Technology has entered rarefied territory. The memory chip maker has not only blown past its previous records but has also vaulted past JPMorgan in market capitalization, a feat that would have seemed unthinkable during the dark days of the 2008 financial crisis. The catalyst? A supply crunch so severe that customers are signing multi-year contracts with upfront payments for chips that haven’t even been manufactured.
The stock surged nearly 15 percent on Friday alone, closing at €633.50 — a fresh all-time high that capped a week of gains exceeding 43 percent. That marks the strongest weekly performance since December 2008. The rally has been fueled by an acute shortage of high-bandwidth memory (HBM) chips, the specialized components essential for artificial intelligence infrastructure.
A Supply Squeeze That Won’t Let Up Until 2028
The numbers tell a stark story. DRAM prices jumped 57 percent in April compared to the first quarter, according to Bernstein Research. The bottleneck is so extreme that Micron CEO Sanjay Mehrotra has disclosed that key customers are receiving only a fraction of their required volumes. The company’s entire HBM production capacity through the end of 2026 is already fully booked.
Industry observers don’t expect relief anytime soon. The supply situation is not projected to ease before 2028, as the global buildout of AI infrastructure continues to devour memory chips at an unprecedented pace. Hardware manufacturers have already begun cutting orders after spot prices surged too quickly, though the market quickly dismissed those concerns as temporary noise rather than a structural shift.
The financial results underscore the pricing power Micron now commands. The company beat earnings expectations by nearly 33 percent in its most recent quarter. For the current May quarter, management is targeting a gross margin of 81 percent. Revenue for the second quarter of fiscal 2026 reached $23.86 billion, with analysts expecting a leap to roughly $33.5 billion for the May quarter.
Should investors sell immediately? Or is it worth buying Micron?
Wall Street Scrambles to Keep Up
The speed of the rally has left analysts playing catch-up. DA Davidson issued a highly bullish note on Friday, setting a new price target of $1,000. Mizuho raised its target from $545 to $740, citing the enormous memory requirements of autonomous AI agents. Yet the average Wall Street target remains well below the current market price, reflecting how rapidly the stock has outpaced expectations.
Other banks have taken a more measured approach. KeyCorp sees the stock at $600, while Bernstein has set a target of $510. The divergence in analyst opinions highlights the uncertainty surrounding a company whose market capitalization has ballooned to over $841 billion.
The institutional landscape is shifting as well. Fitch recently upgraded Micron’s credit rating to BBB+, and the company was added to the S&P 100 index in March 2026. The stock has gained more than 735 percent over the past year, a trajectory that has pushed its relative strength index to 73.5 — technically overbought territory that could trigger profit-taking in the near term.
The Next Test
The real test for Micron’s valuation will come in July 2026, when the company reports results for the just-completed quarter. By then, investors will have a clearer picture of whether the pricing power and supply constraints can sustain the momentum — or whether the market has already priced in years of future growth. For now, the memory maker finds itself in an enviable position: customers are paying upfront for chips that won’t exist for years, and the factory lines are booked solid through 2028.
Ad
Micron Stock: Buy or Sell?! New Micron Analysis from May 9 delivers the answer:
The latest Micron figures speak for themselves: Urgent action needed for Micron investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from May 9.
Micron: Buy or sell? Read more here...
