Shares of Micron Technology Inc. soared to a record high during Monday’s trading session, marking a significant milestone for the memory chip manufacturer. The stock advanced by nearly 6 percent, closing at approximately $440 per share. This rally is fueled by a bullish analyst report and the seemingly insatiable demand for hardware to power artificial intelligence applications.
The company is capitalizing on rising prices for its DRAM chips, a direct result of the explosive expansion in AI. This growth necessitates increasingly powerful data centers, which in turn require vast amounts of high-performance memory.
Strategic Position in the AI Ecosystem
Micron has secured a vital role in the AI supply chain. Its high-bandwidth memory (HBM3E) chips are essential components in leading AI accelerators, including Nvidia’s Blackwell platform and AMD’s MI355 series. The company has outlined its roadmap to commence production of the next-generation HBM4 memory starting in the second quarter of 2026.
Despite the substantial share price appreciation, many market observers still consider the valuation appealing. The forward price-to-earnings ratio for fiscal 2026 is estimated at around 13. Currently, 88 percent of covering analysts maintain a positive rating on the stock.
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Analyst Forecasts Substantial DRAM Price Increases
A recent report from Phillip Securities has reinforced the optimistic outlook. Analyst Yik Ban Chong issued a “Buy” recommendation with a price target of $500. The research anticipates a sharp rise in DRAM prices for fiscal year 2026, citing constrained industry capacity against a backdrop of massive investment in AI infrastructure by major technology firms.
Evidence of this investment surge is clear in recent corporate announcements:
- Meta Platforms has projected capital expenditures between $115 billion and $135 billion for 2026, a substantial increase from its $72.2 billion outlay in 2025.
- Microsoft reported a 66 percent jump in its capital spending to $37.5 billion in its most recent quarter.
Major Capacity Expansion Underway
To meet this burgeoning demand, Micron is embarking on a significant expansion of its manufacturing capabilities. A cornerstone of this plan is a new facility in Singapore, representing a long-term investment of roughly $24 billion over the coming decade. This plant will focus on producing NAND chips, which are critical for data center storage and AI infrastructure.
The company’s market capitalization now stands at approximately $467 billion. This valuation places the stock far above its 52-week low of just under $62, highlighting a remarkable period of growth driven by its central position in the AI revolution.
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