Micron Technology (Micron (MU)) shares jumped 4.3% on Monday, hitting $1,013.94 as investors kept piling into AI-linked semiconductor stocks. The move came on a day when the broader market was basically flat—the Nasdaq was down 0.07% and the S&P 500 slipped 0.06%—so Micron's rally stood out.
There wasn't any company-specific news driving the pop. Instead, it was more of the same: continued enthusiasm around artificial intelligence infrastructure spending. Technology stocks led the market higher despite weak overall breadth, and semiconductor names rode that wave.
The bullish sentiment follows growing analyst confidence that Micron remains attractively valued despite its massive run. Several market commentators have argued that accelerating AI-related demand for memory chips could support further upside.
Doug Clinton, founder and CEO of Intelligent Alpha, told CNBC that Micron's valuation is still reasonable at roughly 10 times forward earnings, even after its explosive rally. He pointed to continued AI data-center spending by hyperscalers and enterprises, including ongoing investments from companies like Microsoft (MSFT).
Gene Munster of Deepwater Asset Management described the AI infrastructure cycle as being only in its "second inning," arguing that demand for memory chips reflects a structural shift rather than a typical semiconductor cycle. He highlighted forecasts for significant DRAM market growth and said Micron and its rivals remain attractively valued relative to their earnings potential.
David Miller, CIO of Catalyst Funds, echoed that view, calling Micron a rare combination of growth and value. He noted the stock still trades below 10 times forward earnings despite gaining more than 800% over the past year.
Not everyone is convinced, though. Morningstar analyst William Kerwin warned that investors may be underestimating the cyclical nature of the memory market. He cautioned that aggressive capacity expansion by Micron, Samsung Electronics (SSNLF), SK Hynix, and Chinese suppliers could create oversupply risks beginning in late 2027 and extending into 2028.






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