Micron Technology Inc. (MU) is having the kind of year that makes investors wonder if they're reading the chart correctly. Up more than 220% year-to-date as of Christmas Eve, the memory chip maker touched $289.30 Wednesday before easing back slightly—a fresh all-time high that caps off a rally investors are still trying to wrap their heads around.
Why Everyone Suddenly Cares About Memory Chips
The answer, unsurprisingly, is artificial intelligence. But not in the obvious way. While everyone's been focused on the flashy GPU makers, Micron quietly positioned itself as the company solving one of AI's biggest bottlenecks: memory speed.
Here's the problem: as large language models grow exponentially, they need massive datasets stored close to the processor for instant access. Traditional memory is painfully slow for this task. Enter Micron's High-Bandwidth Memory (HBM) technology, which stacks memory chips vertically to dramatically boost data transfer speeds. Think of it as high-octane fuel for the GPUs training generative AI.
Last week's first-quarter earnings made this story impossible to ignore. Micron reported revenue of $13.64 billion and adjusted earnings of $4.78 per share, handily beating analyst estimates. But the real fireworks came from management's outlook.
The Numbers That Got Wall Street Excited
CEO Sanjay Mehrotra explicitly connected the dots between HBM and future growth, projecting the market will expand at a 40% compound annual rate—from roughly $35 billion in 2025 to $100 billion by 2028. That's the kind of growth trajectory that makes analysts reach for their calculators.
Management expects record highs in both revenue and margins for fiscal 2026, guiding for $18.7 billion in second-quarter revenue alone. Wall Street responded predictably: Rosenblatt Securities hiked their price target to a Street-high $500, cementing Micron's status not just as a chipmaker, but as a foundational pillar of the AI economy.
The bullish sentiment shows up in the data. Micron's momentum score sits at a near-perfect 97.84, signaling exceptionally strong market enthusiasm relative to its peers.
What's Next for the Stock
Micron shares were up 3.25% at $285.26 Wednesday afternoon, trading at a new 52-week high. With the stock significantly above previous highs, traders are watching key levels. That $289.30 high may act as resistance where profit-taking could emerge, while the $278.00 area could provide support if the price retraces and buyers decide to jump back in.
The bigger question is whether this rally has legs or if expectations have gotten ahead of reality. With the stock trading at all-time highs and Wall Street price targets still climbing, investors seem convinced that Micron's AI memory story is just getting started.