Micron Stock Surges 4.62% on Strong HBM Demand and Upgraded Guidance Ranks 23rd in $2.27B Turnover 35.58% Higher Than Previous Day

Micron Technology (NASDAQ:MU) surged 4.62% on September 4, 2025, closing at $124.21 amid heightened demand for high-bandwidth memory (HBM) chips and upgraded financial guidance. The stock ranked 23rd in trading volume, with $2.27 billion in turnover, a 35.58% increase from the prior day. The rally reflects renewed investor confidence in Micron’s positioning within the AI-driven memory sector.

Management raised fiscal Q4 revenue guidance to $11.1–$11.3 billion, exceeding the previous $10.4–$11 billion range and Wall Street’s $10.75 billion consensus. The revision was driven by stronger DRAM pricing and high utilization of HBM production capacity, which is fully booked through late 2025. Key clients, including Nvidia, Microsoft, and Meta, are fueling demand for HBM in AI data center expansions. The company’s May quarter results further underscored momentum, with $9.3 billion in revenue and $1.91 in earnings per share, surpassing estimates.

Financial metrics highlight Micron’s resilience, with a 18.4% profit margin and $10.8 billion in cash reserves against $16.2 billion in debt. Analysts project EPS to rise to $12.80 in 2026, supported by sustained DRAM and HBM demand. Despite a 22.4x trailing earnings multiple, the stock trades at a discount to peers, with a PEG ratio of 0.13 indicating undervaluation relative to growth expectations.

Industry dynamics favor Micron, as global memory revenue reached $170 billion in 2024, with HBM expected to grow to $34 billion in 2025. The company’s leadership in HBM3E and HBM4 technologies positions it to benefit from supply constraints and pricing discipline. Strategic investments in U.S. manufacturing, including $150 billion in capacity and $50 billion in R&D, align with federal incentives and reduced exposure to China, reinforcing its role in secure AI infrastructure.

Technically, MU remains above its 50-day and 200-day moving averages, with $129.85 as the next key resistance level. Analysts note a 21–60% upside potential if the stock sustains its trajectory above $130, though cyclical risks in DRAM pricing persist. The current valuation, combined with strong earnings visibility, supports a bullish outlook for the near term.