Micron Stock Surges on AI Demand as Investors Eye Critical Earnings

Shares of memory chip manufacturer Micron Technology continue their remarkable ascent, fueled by an insatiable artificial intelligence boom. The stock has reached a new record high, extending a multi-month rally driven by soaring demand for advanced AI components. The central question for investors now is whether this momentum is sustainable or if the upcoming quarterly results could trigger a market reassessment.

The explosive demand for High-Bandwidth Memory (HBM) chips stands as the primary catalyst for Micron’s impressive performance. These specialized semiconductors are critical for powering AI data centers and high-performance computing systems. As a key supplier in this market, Micron is capitalizing on a global wave of investment in AI infrastructure. This has propelled the stock to gains exceeding 30% since the start of the year.

Despite this powerful rally, some analysts maintain a measured outlook. Goldman Sachs strategist James Schneider recently reaffirmed a Neutral rating on the stock with a $130 price target. He highlighted three crucial considerations for investors: whether Micron can achieve its ambitious market share goals in the lucrative HBM segment by year-end, the sustainability of current DRAM chip pricing strength, and the company’s ability to maintain margin stability during the transition to the next generation of HBM technology.

Should investors sell immediately? Or is it worth buying Micron?

The broader analyst community has largely responded positively to Micron’s positioning. CLSA initiated coverage with an Outperform rating and a $155 price objective. Cantor Fitzgerald maintained its Overweight recommendation with an identical target, acknowledging competitive pressures from Samsung’s parallel advancements in HBM.

All attention now turns to September 23, when Micron is scheduled to release its fourth-quarter and full fiscal year 2025 results. Following an upbeat preliminary announcement in August, market observers anticipate the company will exceed current estimates. However, projections for the November quarter already suggest a moderation in growth rates.

The company’s forward guidance will be particularly scrutinized. Management’s commentary on its HBM production capabilities and its assessment of DRAM market pricing dynamics will likely set the tone for the stock’s trajectory in the coming months. While the average price target of $147 and a Moderate Buy consensus indicate prevailing optimism, a Relative Strength Index reading above 74 suggests the stock may be technically overbought. The upcoming weeks will determine whether the memory giant can extend its AI-driven success story or if a period of consolidation is imminent.