Micron's Meteoric Rise Amidst Memory Chip Supercycle

Micron Technology shares surged 16% following a strong profit forecast, driven by a global memory chip supply crunch and high demand from AI data centers. The company is one of three major suppliers of high bandwidth memory chips, seeing its stock increase by over 160% this year.

Micron Technology shares experienced a significant 16% surge on Thursday, thanks to a robust profit forecast. This upswing is attributed to a global shortage of memory chips amid soaring demand from AI data centers.

Micron, a major supplier alongside Samsung and SK Hynix, has seen its share price skyrocket over 160% this year. The memory shortage has driven up prices, prompting Micron to predict second-quarter profits nearly double Wall Street estimates.

CEO Sanjay Mehrotra foresees tight memory markets continuing beyond 2026. The sector's cyclical nature poses challenges, but expanding capacity and increased investment aim to meet the surging demand ahead.

(With inputs from agencies.)