Micron Technology, Inc. (NASDAQ: MU) shares experienced a sharp surge as the stock's momentum score jumped from 24.18 to 50.9 on a week-over-week basis. AI Memory Shortages Drive Revenue Surge
Micron reported second-quarter revenue of $23.86 billion, surpassing analyst estimates of $19.94 billion, and adjusted earnings of $12.20 per share, versus the projected $9.21.
CEO Sanjay Mehrotra said, "We are only able to supply, for our key customers in the midterm, about 50% to two-thirds of their requirements."
Mehrotra emphasized that memory has become a "strategic asset" in the AI era, and supply-demand conditions for DRAM and NAND are expected to remain tight beyond 2026.
The company is expanding its global manufacturing footprint to support growing demand.
The Benzinga Edge Stock Rankings show that the company's medium- and long-term trends have turned positive, while the short-term trend remains negative, according to the latest data.
Micron Stock Outlook Divides Analysts Amid AI Demand
Daniel Newman, CEO of TheFutureGroup, called the company's roughly 5 times forward price-to-earnings ratio "pure unadulterated stupidity."
Hardik Shah shared on X that Baird maintained an "outperform" rating and raised its price target to $500, citing strong DRAM pricing and high HBM demand from AI chips through 2027.
David Nicholas, CEO of Nicholas Wealth Management, noted that Micron has risen 50% since January and described it as a "picks and shovels" play on the AI boom.
He added he will watch closely for post-earnings guidance amid an expected 9% market swing.
On Wednesday, Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, praised Micron.
He called it a "very good chip company with insane growth ahead," trading at a 4 forward P/E.
What's Going On With Micron Stock?
Micron Technology closed at $382.09, down 3.40% on Wednesday, and was trading down 2.69% in pre-market hours on Thursday.