Micron Is Suddenly at the Center of AI Spending As Shares Keep Soaring

"It won't come as much of a surprise if you have been closely watching the market that shares of Micron Technology (NASDAQ:MU) climbed 4% over the past week, coinciding with a noticeable shift in retail investor sentiment on platforms like Reddit and X from neutral to very bullish. The memory chip maker has surged 338% over the past year, driven by AI infrastructure demand and persistent supply shortages that are pushing memory prices sharply higher."

"Mentions of Micron on Reddit's r/WallStreetBets have surged recently, with users sharing bullish commentary and massive-gain posts. Sentiment jumped from 32 (bearish) on February 10 to 88 (very bullish) by February 13, a remarkable reversal that followed Morgan Stanley raising its price target from $350 to $450. One popular post titled "$6k->$54k " captured the FOMO energy driving retail interest."

"If you're spending time watching Micron make new highs almost daily, you are not alone. The broader data storage industry is experiencing explosive growth as global memory chip shortages drive prices higher. Western Digital (NASDAQ:WDC) has surged 466% over the past year, while Seagate Technology (NASDAQ:STX) jumped 2.5% on positive industry outlooks. Morgan Stanley notes that DRAM prices could double from current levels while still remaining below spot prices, signaling how constrained supply has become."

Micron Technology shares climbed sharply recently and have risen 338% over the past year as AI infrastructure demand and persistent memory shortages drive prices higher. Revenue rose 57% year over year and profit margins reached 28.1%, supported by HBM4 shipments and nearly $2 billion in Q4 revenue. Retail sentiment flipped to very bullish on platforms such as Reddit and X after Morgan Stanley raised its price target. Contract pricing has increased 86% since December with potential to double. The broader storage sector also logged significant gains, and analysts warn DRAM prices could still rise further.

Read at 24/7 Wall St.