Micron (MU) Rallies 1.67% on Record Earnings, AI Demand Pushes Stock to 7.01% Intraday High

Micron Technology (MU) surged 1.67% on Monday, extending its winning streak to seven consecutive days with a cumulative gain of 21.76% over the period. The stock hit its highest level since October 2025, with an intraday jump of 7.01%, signaling renewed investor confidence in the memory chipmaker’s strategic positioning in the AI-driven market.

The rally reflects Micron’s record financial performance, including $37.38 billion in annual revenue and $8.54 billion in net income for fiscal 2025. Strong demand for high-bandwidth memory (HBM) and other advanced solutions from hyperscale data centers and AI applications has underpinned the company’s growth. Micron’s leadership in HBM4 and HBM4E technologies, coupled with investments in next-generation manufacturing nodes, has positioned it to capture premium pricing and scale production efficiently.

Looking ahead, the company’s Q1 2026 guidance—$12.5 billion in revenue and $3.56 per share in earnings—highlights sustained demand for memory infrastructure in AI training and inference tasks. A 16.6% annual revenue growth rate is projected through 2028, with revenue expected to reach $53.6 billion and earnings to hit $13.6 billion. These forecasts hinge on continued expansion of hyperscale data centers and global AI adoption.

However, risks remain. Intensifying competition from Asian rivals in HBM and NAND flash markets, along with geopolitical tensions affecting supply chains, could pressure margins. Valuation debates persist, with some analysts citing overvaluation against intrinsic value estimates, while others justify the premium through Micron’s R&D reinvestment and dividend increases, which reflect management’s confidence in free cash flow generation and long-term growth.

Micron’s ability to navigate these challenges will depend on its execution of capital allocation strategies, balancing R&D reinvestment with shareholder returns, and maintaining technological leadership in a cyclical industry. The stock’s trajectory will likely remain tied to its capacity to scale HBM production and sustain margins amid evolving market dynamics.