Micron Stock Surges as AI Memory Shortages Intensify

Shares of Micron Technology Inc. rose more than 5% on Thursday after Intel Corp. CEO Lip-Bu Tan warned that the global memory chip shortage could worsen in 2027. Speaking at the AI Infrastructure Summit, Tan noted that memory chip prices have already increased five to seven times as supply struggles to meet AI demand. This outlook was supported by SK hynix CEO Kwak Noh-jung, who suggested 2027 could be the worst year for industry supply.

Micron has seen its stock surge approximately 336% since December 17, 2025, fueled by explosive revenue and margin growth. The company reported fiscal third-quarter revenue of $41.46 billion and provided guidance of $50 billion for the fourth quarter. This growth is closely linked to the AI spending cycle and the demand for high-bandwidth memory used in Nvidia Corp. accelerators.

To ensure long-term stability, Micron established strategic contracts through 2030 covering one-third of its NAND and 20% of its DRAM volume, totaling $22 billion in commitments. While Micron CEO Sanjay Mehrotra stated that supply should only improve gradually by 2028, market data from TrendForce indicates server DRAM contract prices rose 64% in late 2025 and could climb another 270% during 2026.