How Micron Technology Stock Soared 45% Last Month

Published: Tuesday, February 3, 2026 at 5:39 pm

Micron Technology Stock Skyrockets Amidst AI-Driven Memory Demand

Shares of Micron Technology experienced a significant surge in January, climbing 45.4%, according to recent data. This impressive growth comes despite the memory-chip maker not having reported earnings during the period. The driving force behind Micron's success is the soaring demand and prices for memory, particularly high bandwidth memory (HBM), fueled by the rapid expansion of artificial intelligence (AI).

AI companies are aggressively purchasing HBM, a specialized memory type crucial for the intensive data processing required by AI applications. Micron's management indicated in a recent earnings call that its 2026 HBM production was already fully allocated before the year even began. HBM's design, which stacks memory chips vertically, allows for faster data flow and reduced power consumption, making it ideal for AI servers.

Micron is one of the leading providers of HBM modules, alongside South Korean competitors Samsung and SK Hynix. The company is gaining market share, and its HBM sales are generating record revenue and profits. Analysts predict a substantial increase in Micron's annual earnings next year, potentially quadrupling them.

To capitalize on the HBM opportunity, Micron is expanding its manufacturing capabilities and adjusting its product mix. This includes closing its consumer brand, Crucial, to focus on HBM production. Micron's in-house chip manufacturing facilities provide a significant advantage, allowing it to control its production and avoid reliance on third-party services that are already at capacity due to AI accelerator orders.

Micron's stock has shown remarkable growth, increasing by 80% in two months and 303% in six months. Despite this rapid appreciation, the stock appears undervalued based on its expected future growth. The price-to-earnings-to-growth (PEG) ratio is exceptionally low, suggesting that the stock's growth potential is not yet fully reflected in its current price.

BNN's Perspective:

The surge in Micron's stock highlights the significant impact of AI on the technology sector. While the rapid growth is encouraging, investors should remain cautious and consider the inherent volatility of the tech market. The company's ability to execute its expansion plans and maintain its competitive edge in the HBM market will be crucial for sustaining its current momentum.

Keywords: Micron Technology, MU, stock, AI, artificial intelligence, HBM, high bandwidth memory, memory, chip, earnings, Samsung, SK Hynix, Crucial, PEG ratio, investment, market share, growth, technology, shares, stock price, data, profits, manufacturing, expansion

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