Micron Is Suddenly at the Center of AI Spending As Shares Keep Soaring

Core Insights - Micron Technology (MU) has experienced a significant surge in its stock price, climbing 338% over the past year, driven by increased demand for AI infrastructure and ongoing supply shortages in memory chips [1] - The company reported a 57% year-over-year revenue growth and a profit margin of 28.1%, indicating strong financial performance amid rising prices due to AI demand [1] - Major tech companies are projected to invest over $700 billion in AI infrastructure by 2026, further boosting demand for Micron's products [1] Company Performance - Micron is currently shipping HBM4 chips, contributing nearly $2 billion in revenue for Q4 [1] - The company's stock rose 4% in the past week, reflecting a shift in retail investor sentiment from neutral to very bullish, particularly on platforms like Reddit [1] - Contract pricing for memory chips has increased by 86% since December, with potential for further increases, highlighting the tight supply situation [1] Industry Trends - The broader data storage industry is experiencing explosive growth, with Western Digital's stock surging 466% over the past year and Seagate Technology's stock increasing by 2.5% [1] - Analysts from Morgan Stanley suggest that DRAM prices could double from current levels, indicating a constrained supply environment [1] - The memory chip sector is positioned at the center of a significant spending wave related to AI infrastructure, with no signs of slowing down [1]