Micron Technology: A Stellar Performer with a 174% YTD Surge Fueled by AI Memory Demand
Micron Technology claimed the top spot in the S&P 500 on the final trading day of 2025, closing the year with an impressive 174% increase in its share price. The company, once a cyclical supplier, has evolved into a crucial player in the AI data center landscape, thanks to its high-bandwidth memory (HBM) and advanced DRAM products.
The company’s data center revenue skyrocketed to $20.75 billion in fiscal 2025, a 137% increase from the previous year. This accounted for 56% of total sales, a significant jump from 35% in fiscal 2024.
Micron’s Cloud Memory Business Unit reported a staggering $4.5 billion in the fourth quarter alone. With margins nearing 59% and record HBM revenue, the unit significantly contributed to the company’s profitability.
Analysts are showing increased optimism towards Micron. Morgan Stanley has raised its price target to a Street-high $338, citing “intensifying shortages” in memory markets.
According to TrendForce, DRAM contract prices are expected to rise 45-50% quarter-over-quarter in Q4 2025. Combined DRAM and HBM prices are projected to surge 50-55% as supplier inventories near depletion.
Micron reached an all-time high of $260.58 on November 17, nearly quadrupling its 52-week low of $61.54. The management portrays the company as the sole U.S.-based memory manufacturer and a primary beneficiary of the “trillions of dollars” AI capital expenditure wave transforming the technology landscape.