New York, Jan 22, 2026, 09:32 EST — Regular session
- Micron shares jumped roughly 6.6% in early U.S. trading.
- Stifel and William Blair highlighted the tight supply of high-speed AI memory chips.
- A company has filed detailed voting results from its annual meeting along with a charter amendment.
Micron Technology Inc (MU) shares jumped 6.6% to $389.11 in early Thursday trading, fueled by renewed bullish sentiment highlighting memory chips as a critical bottleneck in AI systems.
This move is significant because Micron is at the heart of a trade that shifts with every change in AI spending and hardware availability. Memory markets are inherently cyclical, yet the bullish argument claims this cycle is different — tighter, extended, and driven by scarcity pricing.
Stifel kicked off coverage with an Outperform rating, citing a multi-year memory cycle upswing fueled by AI demand and tight supply. The firm highlighted that “access to memory has become a key bottleneck in AI racks/systems,” which should boost high-bandwidth memory (HBM)—a speedy type paired with AI processors—and push average selling prices (ASPs) higher. Still, it flagged risks like increasing competition in HBM from Samsung, heavy capital expenditures, and a potential easing in the DRAM supply-demand balance. (Investing)
William Blair’s Sebastien Naji started coverage with an Outperform rating, saying the stock could gain momentum thanks to a multiyear, AI-driven product cycle. He pegged fair value around $450. (Barron’s)
Separately, Micron disclosed in an 8-K filing that shareholders approved an amendment to its certificate of incorporation, limiting certain officers’ personal liability for monetary damages related to duty-of-care claims, in line with Delaware law. The filing also revealed shareholders rejected a proposal aimed at changing rights around shareholder special meetings. (SEC)
The market is grappling with rising memory costs. A Reuters report this week highlighted how AI infrastructure expansions have gobbled up a big chunk of global memory supply, sending prices higher and forcing some consumer electronics makers to hike their prices. Emarketer analyst Jacob Bourne noted the shortage “is certainly going to show up as higher prices for consumers.” Tobey Gonnerman from semiconductor distributor Fusion Worldwide said they’ve seen “1,000% price inflation in some products.” Counterpoint forecasts memory prices could surge 40% to 50% in the first quarter. (Reuters)
Micron’s immediate concern is if pricing power is reflected in contracts and product mix, not only in the often-volatile spot market. Traders will be on the lookout for signs that the supply crunch is moving into consumer devices — a demand-driven segment — instead of remaining locked in data centers.
The downside scenario feels familiar: memory booms often lead to overcapacity, which then pressures prices. If AI server demand cools off, competitors ramp up production sooner than anticipated, or smartphones and PCs face a steeper drop due to rising component costs, this trade could quickly lose steam.
Investors are now turning their attention to Micron’s upcoming earnings, scheduled for March 18 according to Yahoo Finance’s calendar. The company’s outlook on HBM shipments, supply deals, and pricing should drive the stock’s next move. (Yahoo)
