Why did Micron’s stock suddenly become a rocket? This one announcement from Nvidia created a stir in the market!

A huge jump of about 6.0% was seen in the shares of Micron Technology in this morning’s trading. With this the company’s shares reached a new peak of $1,038.94. In fact, an explosive announcement made by Nvidia at the Computax event has filled the AI ​​memory sector with excitement, which directly benefited Micron.

Why did Micron Technology stock rise?

During the ongoing Computex conference in Taiwan, Nvidia CEO Jensen Huang presented ‘RTX Spark Superchip’ to the world in his keynote speech. This AI processor based on Arm architecture has been specially designed for the PC market. This new chip will be seen in laptops of big companies like Microsoft, Dell, HP, Asus, Lenovo and MSI. Jensen Huang told that it has been prepared in collaboration with Microsoft. Since Micron is the largest supplier of advanced DRAM and high-bandwidth memory (HBM) used in these AI-enabled devices, market experts believe that this announcement will significantly expand the scope of Micron’s business.

Analysts’ confidence and strong demand

This bullishness of Micron has also been strengthened by the positive feedback received from market experts in recent times. On May 26, UBS analyst Timothy Arcuri raised Micron’s target price directly from $535 to $1,625. This is a huge increase of 204%, which has created a new record in the market.

Additionally, Micron has already sold the entire stock of HBM4 for the year 2026 in advance. The company’s CEO Sanjay Mehrotra himself has confirmed this and said that at present they are able to meet only 50 to 65 percent of the total demand of their big customers. Now investors’ eyes are on Micron’s third quarter results to be released on June 24. The market expects that the results will be excellent, after which there may be a bigger rise in the stock.

Market slow, but semiconductor sector strong

There was no significant movement in the American stock market today; While the S&P 500 remained flat at -0.04%, the Dow Jones closed down -0.33%. Nasdaq also had a slight gain of just +0.07%. Contrary to all this, this stormy rise of Micron has made it clear that this rise is not due to the confidence of the market, but due to the big changes coming in the company and the entire sector. According to the data till May 29, ‘Philadelphia Semiconductor Index’ (PHLX) has given the best performance in the first 100 days of the year in its history, which also benefited the shares of this sector even today.

Nvidia’s entry into the PC market, Micron’s lack of supply (huge demand) and the confidence of market experts, all these together have created an excellent environment for Micron. In the recent quarter, the company’s strong sales, record profits and increasing demand for AI have doubled its growth pace, due to which the company is rapidly increasing its manufacturing capacity. Today, when this stock is touching its all-time high and its quarterly results are going to come in a few weeks, the market is fully convinced that Micron is no longer just an ordinary chip making company, but has become a very strong foundation of AI infrastructure.

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