Micron Technology (MU) has emerged as a key player in the AI semiconductor sector, with its stock soaring 162% over the past six months to around $440. This surge is driven by a robust demand for high-bandwidth memory (HBM) from AI hyperscalers deploying extensive GPU clusters in their data centers. Micron’s HBM3E and upcoming HBM4 products are already sold out for 2026, allowing the company to command premium pricing and enhance profit margins across its DRAM and NAND offerings.

The ongoing AI revolution is reshaping the memory market dynamics, moving away from traditional cyclical patterns. With the HBM market projected to grow at 40% annually, reaching $100 billion by 2028, Micron is poised to capitalize on this trend. Fiscal 2025 EPS of $7.59 has already more than doubled to $16.68 in the first half of fiscal 2026, with management forecasting continued growth.

Investors should consider Micron not just as a participant in a temporary boom, but as a vital enabler of the AI infrastructure era, with potential share prices projected to reach between $2,070 and $2,875 by 2029.

Source: fool.com