Micron Technology Dominates High-Bandwidth Chip Market Amid AI Surge

Micron Technology's shares soared by 9% following a strong quarterly profit forecast. The company is leveraging the booming demand for high-bandwidth memory chips crucial for AI models. Micron plans increased investments and structural changes to meet future demand, despite supply constraints continuing into 2026.

Micron Technology witnessed a significant 9% rise in its shares during premarket trading on Thursday, spurred by an impressive quarterly profit forecast that highlights its dominance in the high-bandwidth memory chips market amid rising prices. As one of the top three suppliers, alongside Samsung and SK Hynix, Micron's chips are essential for training and deploying generative AI models.

With the second-quarter adjusted profit forecast nearly double Wall Street's expectations, Micron is strategically positioning itself amid an ongoing global supply crunch. CEO Sanjay Mehrotra projected that market tightness could last through 2026. Micron plans to meet only a fraction of its key customers' demand in the medium term.

In its pursuit of enhancing production, Micron is reshaping its business model, focusing more on enterprise and AI sectors while ending its customer-facing Crucial brand. The company's ambition is further reflected in its increased 2026 capital expenditure plans, aiming to harness growing AI-driven demand.