Micron Technology Stock Hits Record!

Micron Technology (NASDAQ:MU) shares gained nearly 9% on Thursday, reaching around $237.50. The stock briefly touched an all-time high of $239.88 as investors welcomed reports regarding rising prices of next-generation HBM4 memory chips.

The surge began after SK Hynix confirmed it had reached new pricing terms for HBM4 supply with NVIDIA (NASDAQ:NVDA). With this agreement, unit prices are expected to rise to approximately $560. This represents an increase over previous expectations of $500 and is more than a 50% rise over current HBM3E levels. The deal has boosted hopes within the broader memory sector.

High-bandwidth memory has secured a crucial position in artificial intelligence infrastructure, creating strong demand alongside tight supply. Seagate Technology (STX) and SanDisk saw gains of over 10%, while Western Digital (WDC) also recorded more than a 5% increase. This indicates a renewed investor interest in memory and storage stocks.

Citigroup updated its price target for Micron to $275. This is seen as a consequence of the expected 25% increase in DRAM prices. As part of the evaluations on the stock, Exane Bank upgraded its rating from Underperform to Outperform, with a new price target of $270.

However, analysts suggest that Micron may face design and production challenges during the HBM4 launch, which could hinder volume deliveries.