Micron stock heats up again, crossing $1,000

Micron's stock surged past the $1,000 mark in early trading on Monday, a level it hasn't reached since July 6. This comes after a 25% drop from that date through July 29, driven by concerns about overvaluation in momentum AI stocks. However, the stock has since rebounded by 36%. Several factors are contributing to this positive trend.

The demand for Micron's high-bandwidth memory (HBM) modules is strong, fueled by hyperscaler infrastructure buildouts. These HBM3E and HBM4 modules are integral to Nvidia and AMD AI graphics accelerators. JPMorgan strategist Jay Kwon noted in a recent note that the memory chip shortage, which is boosting prices for Micron products, is expected to last for at least two more years.

Kwon also pointed out that the total addressable market for memory is expanding due to both higher prices and increased volume, and demand from non-GPU segments, such as CPUs, has been underestimated by investors. Micron's CEO expressed optimism at an industry event, stating that demand since their last earnings report in June has increased across all end markets.

Customers are consistently requesting more supply, despite higher prices, and Micron has highlighted that they cannot meet half of their demand from data center customers in many cases. KeyBanc analyst John Vinh commented on this after the event, suggesting that the stronger demand could lead to tighter conditions in 2027 compared to 2026.