Micron's AI-Driven HBM Surge Propels $2.02B Trading Volume, Up 31.9% from Previous Day into Top 500 Daily Volume Stocks

Micron Technology (MU) rose 1.63% on August 22, with a trading volume of $2.02 billion, up 31.89% from the previous day. The stock’s performance aligns with renewed investor interest in its high-bandwidth memory (HBM) solutions, which are critical for generative AI infrastructure. Micron’s HBM products, essential for powering advanced GPUs like Nvidia’s Blackwell GB200 and AMD’s Instinct MI350, have driven strong demand, with the company selling out its 2025 output and facing robust orders into 2026.

Analysts highlight Micron’s strategic positioning in the AI boom, leveraging its pricing power amid tight supply due to HBM’s complex manufacturing. Fiscal 2025 sales are projected to surge 47% to $36.91 billion, with another 34% growth expected in fiscal 2026. Earnings per share are forecast to rise over 500% this year to $8.04, followed by a 62% increase to $13.05 in FY26. Recent revisions to earnings estimates have seen a 16% and 23% rise in FY25 and FY26 forecasts, respectively, over the past 60 days.

Micron’s valuation remains attractive compared to broader market benchmarks, trading at a forward P/E of 14.5x and a forward sales multiple of 3.5x, both below the S&P 500 average. Analyst upgrades have further reinforced optimism, with price targets revised upward. The average target of $152.42 implies a 30% upside from current levels, nearing its 52-week high of $129.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The CAGR was 6.98%, with a maximum drawdown of 15.59% during the backtest period. The strategy demonstrated steady growth over time, making it a robust choice for investors seeking consistent returns. However, the significant drawdown in mid-2023 highlights the importance of risk management in high-volume trading strategies.