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Micron Technology shares rose 5% on Tuesday as investors returned to memory-chip stocks following a recent selloff. Strong demand for high-bandwidth memory and other AI infrastructure products continues to support Micron’s revenue outlook.
Micron Shares Rebound Toward $1,000
Micron closed at $983.12, up 5% for the session. The stock traded between $950.08 and $992.82 after opening at $987.24.
The increase followed a 4.3% decline in the previous session during a wider semiconductor selloff. Micron shares remain below their June high but have gained sharply in 2026 as investors price in stronger memory demand and limited industry supply.
Other chip stocks also recovered Tuesday. The move came as softer U.S. inflation data supported the technology sector and reduced some concerns about higher interest rates.
AI Demand Puts Pressure on Memory Supply
Artificial intelligence systems require large amounts of high-speed memory to move data between processors. High-bandwidth memory, or HBM, is used alongside graphics processors in servers built for AI training and inference.
Micron expects demand for DRAM and NAND memory to remain above industry supply beyond calendar 2027. New factories take years to build. Construction delays, labor shortages, permitting requirements and power infrastructure also limit how quickly production can increase.
KeyBanc analyst John Vinh raised his Micron price target to $1,750 after a supply-chain review in Asia. He expects memory shortages to continue through 2027, with prices for DRAM, NAND and HBM rising as suppliers struggle to meet demand. The target represents an analyst forecast rather than a guaranteed share-price outcome.
Micron Reports Record Quarterly Revenue
Micron generated $41.46 billion in revenue during its fiscal third quarter, up from $23.86 billion in the previous quarter and $9.30 billion one year earlier. GAAP net income reached $28.24 billion, or $24.67 per diluted share.
Cloud Memory Business Unit revenue rose to $13.77 billion, while Core Data Center Business Unit revenue reached $11.52 billion. Combined data center revenue exceeded $25 billion during the quarter. The company expects fiscal fourth-quarter revenue of $50 billion, plus or minus $1 billion. It forecast non-GAAP earnings of $31 per share, plus or minus $1.
HBM4 Shipments Support the Next Product Cycle
Micron has started high-volume shipments of its HBM4 memory for a lead customer’s platform. It has also provided qualification samples to several other customers.
Development of HBM4E is underway, with volume production expected in 2027. Micron is also expanding production of server memory, low-power data center products and high-capacity solid-state drives designed for AI workloads.
Memory capacity per server has doubled in three years as AI models require longer contexts and more data. Those trends are increasing demand for both memory bandwidth and storage capacity.
Supply Limits Shape the Outlook
Micron is increasing capital spending to expand production, but new manufacturing capacity will take time to reach the market. The company invested $7.1 billion in capital expenditures during the third quarter. Strong pricing and limited supply have improved revenue and margins, but they also create risks. Customers could reduce orders if AI infrastructure spending slows, while competitors could add capacity faster than expected.
Micron’s current outlook assumes that AI-related demand continues to grow faster than memory supply. Its next results will show whether higher prices and data center orders can maintain the company’s recent growth rate.
