Micron Technology (MU) stock rose in pre-market trading on Wednesday after rival SK Hynix forecast a powerful upswing in memory chip demand driven by the artificial intelligence boom.
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SK Hynix Forecasts “Supercycle” as AI Demand Outstrips Supply
SK Hynix, one of the world’s largest chipmakers and a key Nvidia (NVDA) supplier, said its entire memory chip production for next year is already sold out. The company expects limited capacity in its DRAM division due to soaring AI demand.
“This structural constraint on DRAM supply is expected to support the current prolonged memory supercycle, as supply growth lags behind accelerating demand,” said Kim Kyu-hyun, head of DRAM marketing at SK Hynix.
The company also posted record quarterly operating profit of $8 billion, up 62% from a year ago, while revenue surged nearly 40% to just over $33 billion.
Micron Expands AI Memory Capacity and Benefits From Tight Supply
Micron and SK Hynix are among the few manufacturers producing high-bandwidth memory (HBM), which is a critical component for AI servers and GPUs. Micron’s latest HBM3e chips are already being used in Nvidia’s Blackwell GPUs, some of the most in-demand processors on the market.
In September, Micron reported Fiscal fourth-quarter revenue of $11.2 billion, up 46% year over year, with earnings of $3.03 per share. For the current quarter, the company guided for $12.5 billion in revenue and $3.75 in EPS, signaling continued momentum into 2026.
Analysts Raise Forecasts as DRAM Prices Surge
Wall Street is taking note. Earlier this week, Citigroup analyst Christopher Danely raised his price target on Micron to $275 per share, citing what he calls “the largest quarter-on-quarter increase in DRAM pricing since the 1990s.”
Danely expects tight supply and AI-driven demand to lift Micron’s earnings by as much as 20% next quarter.
What’s Next for Micron
Micron will report its Fiscal first-quarter results on December 17, and investors should be looking out for confirmation that the AI-fueled memory boom is continuing into 2026.
The stock has already added over $160 billion in market value in just six months, and optimism is building that the next phase of the AI infrastructure race will be powered by the companies making its essential memory chips.
Is Micron a Good Stock to Buy?
According to data from TipRanks, 29 analysts have issued ratings on Micron Technology (MU) over the past three months, and the consensus remains Strong Buy. Out of these, 26 analysts rate the stock a Buy, while three recommend a Hold.
The average 12-month MU price target stands at $215.74, suggesting a slight 2.78% downside from current levels.
