MarketsJun 26, 2025
The Market Slept on Micron and Its Memory Chips, But With AI Driving Record Demand, Investors Are Finally Wide Awake
Semiconductor Cycle
Rhea Lobo
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While everyone’s attention has turned to Nvidia, Micron has secretly been working behind the scenes to capture the AI goldmine. Unlike Nvidia’s processors that perform AI computations, Micron’s memory chips are responsible for storing and efficiently supplying the data that those systems run on. With tech giants racing to scale data centers, these chips have become a must-have — and Wall Street is taking notice.
Walking down memory lane: High-bandwidth memory (HBM) chips are in short supply and explosive demand, as the AI boom fuels a need for faster, more specialized processing. In this red-hot market, Micron, along with Samsung and SK hynix, is one of only three major suppliers globally, forming an oligopoly in the fastest-growing segment of this market. With the company riding the AI boom and experiencing strong demand for its high-performance chips, Micron’s stock is up 44% this year.
While Trump’s proposed tariffs on imported semiconductors rattled the industry, Micron has been quietly hedging its bets. By ramping up domestic investment, the chipmaker is sidestepping trade risks while doubling down on the booming AI memory market. Its commitment includes $150B toward US manufacturing in New York, Idaho, and Virginia, plus $50B for R&D. Additionally, its strong Q3 earnings yesterday have reinforced investor confidence that momentum is picking up.
Wired for growth: Wall Street’s enthusiasm has sparked a flurry of price target hikes for Micron. Wells Fargo raised its target to $170, citing confidence in the group’s high-bandwidth memory growth, while Stifel bumped theirs to $145, pointing to strong long-term prospects. Still, not everyone expects the rally to be uninterrupted. Rational Equity Armor Fund’s Joe Tigay cautioned, “It wouldn’t surprise me to see some consolidation around earnings, or in the summer months, before the rally resumes later this year,” suggesting even bulls recognize the stock’s rise may need a breather.
