Shares of Micron Technology surged as much as 19% in a sharp rally that reignited enthusiasm around artificial intelligence-linked chip stocks, with investors piling into semiconductor names amid bullish analyst calls and strong earnings momentum.
The rally gathered pace after UBS raised its price target on Micron to $1,625 from $535 while maintaining a “Buy” rating on the stock. The revised target is now the most optimistic forecast on Wall Street and implies that the stock could potentially double from current levels.
Micron shares were trading around $843 during the session, extending an already remarkable run. Even before the latest surge, the stock had climbed nearly eightfold over the past year, significantly outperforming the broader S&P 500 as investors rushed into AI infrastructure plays.
The bullish sentiment has largely been driven by Micron's strong positioning in the fast-growing high-bandwidth memory (HBM) market, a crucial component powering AI servers and advanced computing systems. Analysts believe the company's expanding order book, combined with growing demand for AI chips and memory solutions, is strengthening its long-term growth outlook.
Micron's latest quarterly numbers further reinforced investor confidence. The company reported fiscal Q1 2026 revenue of $13.64 billion, marking a 57% year-on-year jump, while adjusted earnings per share came in at $4.78, comfortably beating analyst estimates of $3.94.
Its Cloud Memory Business Unit nearly doubled revenue to $5.28 billion during the quarter while delivering robust gross margins of 66%, highlighting the profitability of AI-driven demand.
The company also issued strong guidance for the second quarter of 2026, forecasting revenue of $18.7 billion, plus or minus $400 million, and non-GAAP EPS of $8.42, plus or minus $0.20.
Investor optimism has also been supported by Micron's expanding domestic manufacturing footprint and visible US government backing as countries increasingly prioritise secure AI supply chains and semiconductor self-reliance.
The rally was not limited to Micron alone. Advanced Micro Devices gained nearly 5%, while Qualcomm rose over 5% and Intel advanced around 3%. NVIDIA initially traded higher before slipping marginally into the red later in the session, underscoring the continued volatility in AI-linked technology stocks.
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