Micron stock (NASDAQ: MU) surged nearly 8% on November 5, 2025, closing at $233.54, just shy of its all-time high of $237.62 set earlier this week.
The memory chip giant has become one of the hottest semiconductor plays of 2025, with shares skyrocketing more than 180% year-to-date as artificial intelligence infrastructure spending drives unprecedented demand for high-bandwidth memory.
The rally gained fresh momentum following positive market signals from South Korean competitors SK Hynix and Samsung, which announced record-breaking HBM4 pricing agreements with major AI chip customers, reinforcing bullish sentiment across the entire memory sector.
Why Micron stock is rallying and what it means
The explosive rally in Micron’s stock is rooted in a perfect storm of supply constraints and surging AI-driven demand.
Citi analyst Christopher Danely recently raised the firm’s price target to $275, noting that DRAM prices are expected to jump 25% in the fourth quarter compared to the third quarter, the highest quarterly increase since the 1990s.
DRAM spot prices have skyrocketed nearly 50% in just two weeks, driven by artificial intelligence demand and limited supply.
Micron’s business transformation is equally impressive.
The company’s data center business now accounts for 56% of total revenue, up dramatically from previous years.
High-bandwidth memory products, including HBM3E, high-capacity DIMMs, and low-power server DRAM, generated $10 billion in revenue during fiscal 2025, representing a fivefold increase year-over-year.
With HBM revenue alone approaching $2 billion in the fourth quarter and six confirmed customers, Micron has firmly positioned itself as a critical supplier to the AI infrastructure buildout led by hyperscalers like Nvidia, Google, and Amazon.
What analysts say
Wall Street’s enthusiasm for Micron has reached a fever pitch. Weiss Ratings upgraded Micron from “Hold” to “Buy” on November 2, joining a chorus of bullish calls from major firms.
Citigroup leads the pack with a $275 price target, while BNP Paribas Exane set a street-high target of $270 after upgrading the stock to “Outperform” in mid-October.
The consensus price target among 29 analysts stands at $215.74, representing significant upside potential from current levels.
Multiple analysts have raised their price targets following Micron’s blowout fourth-quarter fiscal 2025 results, which saw revenue climb 46% year-over-year to $11.32 billion with adjusted earnings per share of $3.03, both figures exceeding consensus expectations.
KeyCorp boosted its target from $160 to $215, TD Cowen raised its outlook from $150 to $180, and Piper Sandler increased its target from $165 to $200.
In total, the stock currently has 81 buy ratings, 9 hold ratings, and zero sell ratings, reflecting overwhelming analyst confidence.
The bullish thesis centers on structural profitability improvements and extended visibility into AI memory demand.
Analysts highlight that Micron’s gross margins exceeded 50% in the first quarter of fiscal 2026 guidance, the first time since 2018, driven by a favorable product mix and tight DRAM supply dynamics.
However, some caution remains. Reports suggest Micron is facing yield and performance challenges with its HBM4 design, potentially requiring a nine-month redesign that could delay mass production.
While competitors SK Hynix and Samsung are aggressively ramping production, Micron’s ability to close the gap on HBM4 will be critical to maintaining its market share gains.
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