Micron’s Stock Surges Toward Best Streak Since 2019: AI Boom and Memory Demand Fuel the Rally
Boise, September 16, 2025 — Micron Technology (MU) is riding an eight-day winning streak, its strongest since 2019, with shares hitting an all-time high of $157.826, up over 33% in a month. The memory chip giant’s rally, as seen in the finance card above, is no fluke—it’s powered by a perfect storm of AI-driven demand, tight supply, and bullish analyst upgrades. Here’s why Micron’s stock is soaring, and why Wall Street thinks it’s got more room to run.
AI Data Centers: The Engine Behind the Surge
The explosion of artificial intelligence (AI) is the biggest spark. Micron’s high-bandwidth memory (HBM) chips, critical for AI data centers, are sold out through 2025, with demand outpacing supply. Generative AI models need massive storage and fast memory, and Micron’s HBM—used in Nvidia’s Blackwell platform and AMD’s MI355X GPUs—is a linchpin. Gartner estimates HBM’s market could hit $25 billion by 2025, up from $4 billion in 2023, with Micron poised to grab a hefty slice thanks to margins 3.5x thicker than standard DRAM.
Data centers, now 55% of Micron’s revenue, are driving the bus. The company’s Q2 2025 earnings showed a 37% revenue jump to $9.3 billion, with data center sales doubling year-over-year. HBM revenue alone grew 50% sequentially, and NAND sales hit a record $1 billion, fueled by AI-driven SSD demand. As cloud giants like Oracle and Microsoft ramp up AI infrastructure—Oracle plans 130,000 AMD GPUs—Micron’s chips are the backbone.
Supply Squeeze and Pricing Power
It’s not just demand—supply’s playing hardball. DRAM and NAND markets are in undersupply, giving Micron pricing leverage. Citi analysts, led by Christopher Danely, note “constrained capacity” and “stronger-than-expected demand” are pushing prices up, with Micron securing a 10% hike in Q3 talks. The company’s Q1 2025 guidance projects a 39.5% gross margin, a 300-basis-point boost from HBM’s premium pricing. Posts on X highlight the hype, with users like @StockMKTNewz noting Micron’s “huge tailwinds” from AI-driven shortages.
Analyst Upgrades and Earnings Optimism
Wall Street’s all-in. Citi raised its price target to $175 from $150, expecting Micron’s September 23 earnings to beat consensus with $2.62 per share and $11.2 billion in revenue—numbers the company itself upped in August guidance. JPMorgan, Morgan Stanley, and Mizuho also boosted targets, with Mizuho citing Micron’s edge in Samsung’s Galaxy S25, where it’s reportedly grabbing a 60% DRAM share. Institutional buying backs the buzz: Rafferty Asset Management upped its stake by 37.9% to $508.9 million.
Beyond AI: Smartphones, PCs, and Subsidies
Micron’s not a one-trick pony. The generative AI smartphone market, projected to jump 50% in memory needs, and AI PCs, expected to hit 143 million shipments next year, are boosting DRAM demand. Japan’s 536 billion yen subsidy for Micron’s Hiroshima plant adds fuel, signaling global expansion. Plus, a $6.6 billion CHIPS Act grant cements Micron’s U.S. manufacturing edge, a strategic win in a reshoring push.
Risks on the Radar
It’s not all rosy. Micron’s cyclical nature—memory markets swing hard—keeps bears like Seeking Alpha’s Michael Del Monte cautious, giving it an F for valuation despite a Strong Buy nod. Free cash flow lags net income, a red flag for some, and trade tensions could dent global demand. Still, with a forward P/E of 11—cheap compared to the Nasdaq’s 31—analysts like those at The Motley Fool see upside, projecting $8.17 earnings per share for 2025, a 600% leap.
The Road Ahead
Micron’s Q4 earnings drop September 23, and the Street’s betting on a blowout. With shares up 80% year-to-date and analysts like Citi forecasting more gains, the streak could extend. But in a volatile chip world, it’s a high-wire act. For now, Micron’s surfing the AI wave, and if the numbers hold, this streak might just rewrite the record books again. Investors, what’s your play—ride the rally or cash out?