NEW YORK, Jan 5, 2026, 05:59 ET — Premarket
- Micron shares rose about 3% in premarket trading, extending last week’s rally.
- A Reuters report flagged chip- and power-cost inflation tied to AI data centers as a growing market theme.
- Micron’s next earnings are on the calendar for March 18.
Micron Technology (MU.O) shares rose about 3% in premarket trading on Monday, adding to a powerful run that saw the stock jump 10.5% on Friday’s close. Shares were indicated at $325.37 after ending Friday at $315.42.
The move matters because Micron’s fortunes swing with memory prices, and investors are betting this cycle has shifted in its favor. Demand from data centers building out artificial intelligence systems is pulling in more DRAM — the working memory inside servers — and more high-end variants that carry fatter margins.
That price pressure is starting to show up beyond chipmakers. “The costs are going up not down in our forecast, because there’s inflation in chip costs and inflation in power costs,” Morgan Stanley strategist Andrew Sheets said, as investors warned AI spending could feed broader inflation. Reuters
Micron last month posted record fiscal first-quarter revenue of $13.64 billion and non-GAAP profit of $4.78 per share, and forecast fiscal second-quarter revenue of $18.70 billion, plus or minus $400 million. The company also projected non-GAAP earnings of $8.42 per share, plus or minus 20 cents, and said a quarterly dividend of 11.5 cents a share will be paid on Jan. 14.
Investors have been most sensitive to any signs that supply is staying tight for high-end memory. Micron is one of the three major suppliers of high-bandwidth memory, or HBM — a premium type of DRAM used alongside AI accelerators — alongside Samsung Electronics and SK Hynix.
For traders, the next checkpoints are less about headlines and more about the tape: whether memory pricing stays firm and whether customers keep ordering at pace. Any hint that hyperscalers are slowing AI data-center buildouts would quickly echo through the group.
Technically, the stock’s sharp gap higher last week put round-number levels like $300 back in play as a near-term line traders watch for support after a momentum run. Bulls will be looking for the stock to hold gains through the open rather than fade on profit-taking.
But the same forces lifting chip prices carry a downside for the broader AI trade. If inflation fears harden and rate-cut expectations slip, investors can rotate out of high-growth names even when fundamentals remain strong.
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