Micron surges on AI boom and memory chip shortage

The AI industry's explosive growth has created a critical bottleneck: memory chips have become scarce and expensive, with shortages expected to persist through 2027. This supply crunch is driving up costs across the tech sector, with Apple recently warning of inevitable price hikes.

Micron Technology, America's largest computer-memory chipmaker, is emerging as one of the biggest beneficiaries. The company's stock has skyrocketed from around $83 in early 2024 to $1,048.51, vaulting its market cap to $1.2 trillion. In third-quarter earnings released Wednesday, Micron reported revenue of $41.45 billion—a fourfold increase year-over-year—and profit that jumped from $1.88 billion to $28.2 billion. The results triggered a 13% stock surge after hours.

Management signaled continued momentum, forecasting fourth-quarter revenue between $49 billion and $51 billion. The company also announced a strategic deal with AI lab Anthropic to supply memory and storage chips, and participated in Anthropic's Series H funding round.

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