Micron shares surge on AI demand despite overbought warnings

Shares of Micron Technology surged in volatile trading this week, pushing the memory chipmaker’s market capitalization toward $900 billion as investors weigh the sustainability of an extraordinary rally fueled by artificial intelligence demand. The stock’s performance highlights a sharp divide between analysts who see a transformative, long-term opportunity and those cautioning that the industry’s cyclical nature could trigger a significant pullback.

The stock closed at $766.58 on Tuesday, a decline of 3.61 percent, but rebounded strongly in pre-market trading Wednesday to approximately $812, erasing the previous day’s losses. This volatility follows a period of remarkable gains; the stock has more than doubled since late March and has risen in 11 of the past 15 trading sessions. Year-to-date, the stock is up approximately 162 percent.

The primary driver remains unprecedented demand for high-bandwidth memory (HBM), a critical component for AI accelerators and data centers. Company executives have stated that Micron’s entire HBM supply for 2026 is already sold out and that it can only meet 50 to two-thirds of demand from key customers. The company reported record fiscal...