NEW YORK, May 9, 2026, 09:15 (EDT)
Micron Technology Inc. (MU.O) popped more than 15% Friday, last changing hands at $746.81, pushing its market cap close to $853 billion as traders piled into memory-chip stocks linked to the AI data-center boom. Sandisk spiked over 16% as well. Reuters noted both Micron and Sandisk benefited from surging demand tied to the AI data center buildout.
This shift is significant right now; the AI trade has outgrown its early focus on graphics processors. Micron’s portfolio includes DRAM—essential for server and device memory—plus NAND flash storage, and HBM, or high-bandwidth memory. That last one gets stacked close to AI processors to speed up data transfers.
That puts Micron in a select group alongside South Korea’s SK Hynix and Samsung Electronics. On May 8, Reuters reported SK Hynix was fielding an unusual rush of investment proposals from major global tech companies, with buyers eager to lock in memory chip supply. SK Hynix, Samsung, and Micron have each confirmed ongoing discussions with customers about multi-year supply deals.
Micron delivered numbers that pushed the rally forward. Fiscal Q2 revenue surged, nearly tripling year-on-year to $23.86 billion. GAAP net income landed at $13.79 billion, or $12.07 per share. “Memory has become a strategic asset for our customers,” CEO Sanjay Mehrotra said. For the fiscal third quarter, the company is targeting revenue of $33.5 billion, give or take $750 million. Micron Technology
Micron is putting more money into the crunch. The company, in its prepared remarks, said it sees DRAM and NAND supply-demand staying tight past calendar 2026. For fiscal 2026, capital expenditures—covering plant and equipment investments—are projected to top $25 billion.
Wall Street’s in step. Mizuho’s Vijay Rakesh bumped his Micron price target up to $740 from $545 and stuck with his Outperform call. According to Investing.com, Rakesh pointed to “agentic AI is driving memory demand higher” as the reason. That’s AI capable of managing tasks with less intervention from humans, not just following step-by-step prompts. Investing.com
Some are cutting to the chase on the shortage. “Memory chips are the AI bottleneck,” Roundhill CEO Dave Mazza told Business Insider. He pointed out that bringing new fabrication plants online is a three-to-five-year process, and noted that Micron’s HBM supply for 2026 is already locked up under fixed pricing deals. Business Insider
The rally comes with strings attached. Bernstein analyst Mark Li is forecasting a sharp jump in memory contract prices for the second quarter, but the firm points to some conflicting signs in the spot market: price hikes are already cooling consumer demand, and both original equipment makers and module houses have been pulling back on purchases. Bernstein doesn’t see the price momentum lasting—expecting a significant slowdown in increases by the third quarter.
Signs of strain are emerging across end markets. Sony is now projecting a 6% decline in annual gaming sales, down to 4.42 trillion yen. The company points to surging memory chip prices as a key headwind for the industry and warns its PlayStation 5 hardware forecast hinges on securing enough memory at what it calls “reasonable prices.” Reuters
For Micron, it comes down to whether those multi-year customer deals will actually smooth out the sharp swings that have long defined memory markets. The way shares are moving, investors clearly think supply stays tight for now. The catch: prices could climb quickly enough to scare off buyers before fresh capacity is online.
