Micron Shares Surge: What's Driving the Sudden Momentum

Micron Technology has gained 720% over the past 12 months, fueled by surging demand for AI memory chips including high-bandwidth memory DRAM and NAND flash for data centers. The company is shifting production toward AI-specific chips, creating supply constraints that are pushing prices higher across its entire memory product portfolio.

Analysts forecast Micron's revenue could explode from $37.4 billion to $263.8 billion by fiscal 2028—a sevenfold increase driven by the AI infrastructure buildout. Despite this aggressive growth outlook, the stock trades at a lower valuation multiple than AI darling Nvidia, according to Motley Fool analysis.

The supply-demand imbalance stems from Micron's strategic pivot: prioritizing HBM and other AI-tailored memory chips over legacy products. This reallocation is tightening availability across all memory categories, supporting pricing power even as overall semiconductor inventories normalize elsewhere in the market.