Micron Technology Stock Skyrockets Amidst Rising AI Memory Chip Demand
Micron Technology’s stock experienced a significant 10% surge on December 18, 2025. This was following the company’s announcement of outstanding first-quarter results and an unprecedented demand for AI memory chips. Executives have declared that they are “more than sold out” of high-bandwidth memory products.
The memory chip manufacturer reported an adjusted earnings of $4.78 per share on $13.64 billion in revenue. This performance significantly surpassed analyst estimates of $3.95 per share and $12.84 billion in sales. For the upcoming quarter, Micron anticipates revenues to be around $18.70 billion—considerably higher than the $14.20 billion consensus—and adjusted earnings of $8.42 per share versus expectations of $4.78.
Micron’s business chief, Sumit Sadana, stated that the company is facing “a significant amount of unmet demand.” He added that “demand is substantially higher than supply for the foreseeable future.” The company projects that the total addressable market for high-bandwidth memory will reach $100 billion by 2028, growing at a 40% compound annual growth rate. To meet the surging AI infrastructure demand, management has increased capital expenditure guidance from $18 billion to $20 billion.
Several major financial institutions have upgraded their positions. Notably, JPMorgan raised its price target and Bank of America upgraded shares to buy. Morgan Stanley referred to the results as the best revenue and net income upside in “the history of the U.S. semis industry” outside of Nvidia, indicating broader implications for the AI supply chain beyond just processor manufacturers.
Source: CNBC