Micron Technology Surges 2.4% Amid AI-Driven Memory Demand and Analyst Upgrades

Summary
• Micron Technology (MU) trades at $334.86, up 2.3974% intraday
• Intraday range: $326.20–$338.10, reflecting volatile AI sector rotation
• Bernstein analyst Mark Li upgrades price target to $330 from $270, citing 20%–25% sequential DRAM price growth
• Micron’s Q2 FY2026 non-GAAP EPS guidance jumps 440% YoY to $8.42, driven by HBM and NAND demand
Today’s surge in Micron Technology underscores the semiconductor sector’s re-rating amid AI-driven memory demand. Analyst upgrades, robust earnings guidance, and supply discipline in DRAM/NAND markets have propelled the stock to a 2.4% gain. With HBM capacity sold out and multi-year contracts in place, investors are betting on sustained pricing power and margin expansion.

Analyst Upgrades and AI-Driven Memory Demand Fuel Micron's Rally
Micron’s intraday surge is directly tied to Bernstein analyst Mark Li’s upgraded price target to $330 and the company’s Q2 FY2026 guidance of 440% YoY non-GAAP EPS growth. Li’s analysis highlights a 20%–25% sequential rise in DRAM prices, driven by AI data center demand and supply constraints. Micron’s CEO confirmed HBM capacity is fully sold out for 2026, with multi-year contracts locking in favorable pricing. The stock’s 2.4% gain reflects optimism around sustained margin expansion and AI-driven demand cycles.

Semiconductor Sector Rally Gains Momentum as Intel Surges 7.7%
The semiconductor sector is rallying on AI-driven demand, with Intel (INTC) surging 7.71% intraday. Micron’s 2.4% gain aligns with broader sector strength, as memory and logic chipmakers benefit from AI infrastructure spending. Intel’s rally underscores investor confidence in the sector’s ability to capitalize on AI workloads, while Micron’s focus on HBM and NAND positions it as a key beneficiary of the AI memory upcycle.

Options and ETFs Highlight Bullish Momentum: Direxion Daily MU Bull 2X Shares (MUU) Gains 5.6%
• MACD: 24.68 (above signal line 19.19), RSI: 81.10 (overbought), Bollinger Upper: $349.98 (near-term resistance)
• 200D MA: $153.78 (far below current price), 30D MA: $265.87 (support level)
• Direxion Daily MU Bull 2X Shares (MUU): +5.64% intraday, amplifying Micron’s 2.4% move
Micron’s technicals suggest a continuation of bullish momentum, with RSI near overbought territory and MACD above its signal line. The Direxion Daily MU Bull 2X Shares (MUU) offers leveraged exposure to the stock’s upward trajectory. Key levels to watch include the Bollinger Upper Band at $349.98 and the 30D MA at $265.87. Two top options from the chain:
• MU20260116C335: Call option with $335 strike, 52.47% IV, 28.67% leverage ratio, delta 0.57, theta -1.53, gamma 0.0157. High leverage and moderate delta position it to capitalize on a 5% upside (targeting $351.55), yielding a 17.7% payoff.
• MU20260116C340: Call option with $340 strike, 52.48% IV, 34.48% leverage ratio, delta 0.49, theta -1.45, gamma 0.0152. Strong liquidity (turnover $1.64M) and high gamma make it ideal for a volatile move. A 5% upside (targeting $351.55) yields a 15.1% payoff.
Aggressive bulls may consider MU20260116C335 into a bounce above $335, leveraging high gamma and leverage ratio for rapid gains.

Backtest Micron Technology Stock Performance
The backtest of Microchip Technology (MU) after a 2% intraday increase from 2022 to the present shows favorable performance metrics. The 3-day win rate is 51.07%, the 10-day win rate is 56.92%, and the 30-day win rate is 60.82%, indicating that MU tends to experience positive returns in the short term following the intraday surge. The maximum return during the backtest was 10.01%, which occurred on day 59, suggesting that there is potential for significant gains if the positive momentum continues.

Bullish Momentum Unlikely to Subside: Position for AI-Driven Memory Cycle
Micron’s rally is underpinned by structural AI demand, supply discipline, and multi-year contract pricing power. The stock’s 2.4% gain and overbought RSI suggest continued upward momentum, though a pullback to the 30D MA at $265.87 could test near-term resolve. Intel’s 7.7% surge as a sector leader reinforces the AI-driven narrative. Position in call options with strike prices near $335–$340 to capitalize on the AI memory upcycle. Watch for a breakdown below $326.20 intraday low to signal caution.