Shares of Micron Technology vaulted 5.4% to $571.62 on May 4, capping a blistering 13.4% weekly climb from the April 28 low of $504.29, after Zacks Investment Research spotlighted the chipmaker with its highest rating — a Rank #1 "Strong Buy." The catalyst: Wall Street analysts are raising their profit forecasts for Micron, and the reason traces directly to surging demand for memory chips powering artificial-intelligence data centers. Micron Hits $571 on a Wave of Analyst Upgrades and AI Memory Fever — But How Long Can a Sold-Out Order Book Sustain This Pace?
Shares surged as Zacks Investment Research reaffirmed its top "Strong Buy" rating on Micron, spotlighting a torrent of upward profit-forecast revisions fueled by insatiable demand for AI memory chips. MU jumped 5.4% to $571.62, extending a 13.4% weekly rally that underscores how deeply the AI infrastructure boom is reshaping this once-cyclical chipmaker's earnings profile.
• Analysts Keep Raising Profit Estimates — And the Numbers Are Staggering
Micron continues to sport a Zacks Rank #1 (Strong Buy), with EPS revisions soaring across the board.
Zacks consensus estimates suggest 200% year-over-year sales growth on 600% higher earnings in its current fiscal year.
In its last earnings report on March 18, 2026, Micron reported EPS of $12.20 versus a consensus estimate of $8.80 — a 39% beat. When analysts unanimously lift forecasts, it signals that the business is outrunning even bullish expectations, giving shareholders a reason to stay long.
• Every AI Chip Needs Memory — And Micron's Supply Is Completely Spoken For
Micron management confirmed that its capacity for high-bandwidth memory (HBM) — the critical component in AI accelerators — is completely sold out through calendar year 2026.
The company's entire 2026 HBM supply is contracted under multi-year deals , which locks in revenue well ahead of delivery — a rarity in an industry famous for boom-and-bust swings.
• Margins Have Transformed Beyond Recognition
Gross margin hit near 68%, driven by the favorable mix shift toward high-margin HBM products.
This compares to historical gross margins in the 25% to 40% range during traditional memory cycles. In plain terms, Micron is keeping far more of every dollar of revenue as profit, because premium AI memory chips sell for roughly $60–$100 each versus approximately $5 to $10 for a comparable amount of conventional memory.
• The Risk: Competitors Are Coming, and the Cycle Could Turn
Micron is committing heavy capital to chase HBM and AI server demand, which can be attractive while shortages last but could weigh on returns if Samsung, SK Hynix, and others also bring large capacity online in 2027–2028. Even now, the stock trades at just 8.4× current fiscal-year earnings, well below its peer industry average of 22.5× — a discount that either signals lingering fear of a cyclical downturn or a window that hasn't yet closed.
The bottom line: Micron's fundamentals have never been this strong, but investors are ultimately betting that AI spending won't slow before new factory capacity arrives. At $571, the market is pricing in confidence — not certainty.