What Drove Micron (MU) Stock’s 14% Surge on Friday?

TLDR

• Micron stock surged over 14% on Friday amid a rally across the AI chip sector
• DA Davidson set a Street-high price target of $1,000 for Micron
• Micron’s high-bandwidth memory is fully sold out through 2026
• DRAM prices rose 57% in April versus Q1 averages; NAND prices increased 65–70%
• Bernstein expressed short-term demand concerns but maintains a Buy rating

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(SeaPRwire) –   Micron (MU) stock jumped more than 14% on Friday, sharply reversing a 3% decline from Thursday that was triggered by a Bernstein report highlighting challenges in the computer memory spot market.

Micron Technology, Inc., MU

The rebound came as investors returned to AI-related chipmakers, with Micron benefiting from a broader sector upswing.

DA Davidson fueled the momentum by setting a Street-high price target of $1,000 on Micron. The firm cited Micron’s strategic position in the AI memory supercycle as the primary reason.

Micron’s high-bandwidth memory capacity is already completely sold out through 2026. The company also recently released a record 245TB SSD, demonstrating its expansion into high-demand AI infrastructure.

Bernstein’s Thursday note unsettled the market by warning of shortages in both DRAM and NAND flash memory. The concern was that prices had risen so much that original equipment manufacturers (OEMs) and module makers were being forced to reduce their purchases.

Such a pullback in demand could cause price growth to “decelerate notably” by Q2 2026, Bernstein noted, potentially slowing Micron’s near-term profit trajectory.

Price Surge Tells a Different Story

Despite these cautions, the pricing data is compelling. DRAM prices climbed 57% in April compared to Q1 averages. NAND prices increased between 65% and 70% over the same period.

Bernstein continues to hold a Buy rating on Micron and is expected to raise its price target, currently at $510, given its optimistic outlook on the company’s future performance.

Wall Street forecasts Micron to earn nearly $19 per share in the May quarter. Sales are projected to grow 260% to $33.5 billion.

These figures, according to Bernstein, should remain strong even if some buyers reduce their purchases in Q2, as those with available budgets will continue to buy.

Supply Crunch Driving the Story

The central theme behind Micron’s current situation is supply constraints. Nvidia, AMD, and other AI chipmakers are releasing chips faster than memory production can meet demand.

Customers are competing for limited inventory, driving prices higher in the process. This dynamic positions Micron favorably despite near-term market fluctuations.

Micron’s year-to-date stock performance stands at 126.66%, reflecting how the market has significantly revalued the stock as AI infrastructure spending accelerates.

The stock’s technical sentiment is currently rated as a Buy, with an average daily trading volume of approximately 42 million shares.

Friday’s surge brought the stock to $735.44, up $88.81 for the day, with a session high of $735.68.