Fri Jan 02 15:00:00 UTC 2026: Micron Shares Surge on Optimistic AI Demand Forecast

New York, NY – Shares of Micron Technology (NYSE:MU) experienced a significant jump of 8.1% in morning trading today after Bernstein SocGen Group raised its price target on the memory chip maker to $330, up from $270. The firm cited robust demand for memory chips driven by the burgeoning artificial intelligence (AI) sector as the primary reason for its bullish outlook, maintaining an “Outperform” rating on the stock.

Bernstein SocGen anticipates DRAM prices, a crucial component of computer memory, to continue their upward trajectory starting in 2026. This is largely attributed to the explosive growth of data center demand fueled by AI applications, coupled with limitations in memory supply expansion. Multiple industry reports have echoed this sentiment, emphasizing the market’s focus on the seemingly limitless appetite for data center storage. Analysts predict this surge in demand could potentially create a $100 billion market for high-bandwidth memory by 2028.

This surge builds upon already positive momentum for Micron. Just two weeks ago, the stock gained 7.3% following the release of record-breaking first-quarter fiscal 2026 results and a stronger-than-expected forecast for the second quarter, also propelled by soaring demand for AI memory chips.

In the first quarter, Micron’s revenue hit a record $13.6 billion, a 57% year-over-year increase, surpassing analysts’ estimates of $13.0 billion. Earnings per share reached $4.78. The company’s forward-looking guidance was even more impressive, projecting revenue of approximately $18.7 billion for the next quarter, significantly exceeding Wall Street’s anticipation of $14.3 billion.

The company has indicated that its high-end memory supply for 2026 is already fully booked, highlighting the tight supply constraints facing the industry. Micron’s strong performance has driven the stock to an all-time high, demonstrating the strong investor confidence in the company’s ability to capitalize on the AI-driven demand.

While Micron shares are known for their volatility, with 38 moves greater than 5% in the last year, today’s surge indicates that the market views this news as significant, but not necessarily transformative in its overall perception of the company’s business.

For long-term investors, the returns have been substantial. An investment of $1,000 in Micron shares five years ago would now be worth approximately $4,140.

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