Micron Technology's stock surged 5.01% in pre-market trading on Tuesday, continuing its recent upward momentum in the memory chip sector.
The sharp rise follows comments from Micron CEO Sanjay Mehrotra, who emphasized that the AI industry remains in its early stages and that scaling up inference will drive continued growth in token demand. He highlighted that token generation speed depends on faster, higher-capacity memory, positioning memory as a strategic asset for customers. The core challenge identified is not demand or pricing, but extremely tight supply that cannot be quickly expanded, with shortages unlikely to ease before 2028.
Additionally, Micron is drawing strong attention from Wall Street as analysts continue to raise price targets, reflecting optimism about the company's position in the AI-driven memory market. Industry estimates suggest the sector may only meet approximately 60% of DRAM demand by 2027, particularly as production ramps for next-generation AI GPUs.
