Micron (NASDAQ:MU) Stock Hits $127.58 as AI Memory Supercycle Fuels Breakout

Micron (NASDAQ:MU) Surges to $127.58 on AI Memory Ramp and Breakout Momentum

MU Breaks Out as Nvidia Demand, HBM3E Ramp Drive New All-Time High Setup

Micron Technology (NASDAQ:MU) has exploded to $127.58, gaining +3.09% intraday, pushing within striking distance of its all-time high of $128.36 set in 2022. The move is powered by surging demand for AI-grade DRAM and HBM3E, as hyperscaler infrastructure spending ramps into 2026.

The rally confirms a clean breakout above the $120–$125 congestion zone, with investor focus shifting squarely to Micron’s positioning in Nvidia’s HBM3E supply chain and the high-margin DRAM recovery cycle.

Wall Street momentum is accelerating. Analyst targets are climbing toward $135–$140, as traders rotate into semiconductor names leveraged to AI architecture rather than consumer tech or cyclicals. Micron now commands a $140B+ market cap, making it a strategic play in the memory arms race fueling next-gen LLM deployment.

HBM3E Volume Ramps, Nvidia Partnership Anchors Strategic Bull Thesis

Micron’s near-exclusive delivery of HBM3E to Nvidia’s Blackwell GB200 platform has shifted the narrative. What was once a DRAM/NAND cyclical story is now a core AI infrastructure trade. Volume production of HBM3E is set to scale aggressively in Q4 2025, but forward orders and ASP visibility are already lifting investor confidence.

Estimates suggest Micron could capture 30–35% of total HBM share by 2026, up from under 10% today. Management confirmed HBM shipments are booked well into FY2026, with average selling prices up 30–40% YoY on high-density SKUs. This is driving margin expansion and future-proofing cash flows even as legacy NAND and PC markets lag.

Technical Breakout Clears $125 — All-Time High Now in Play

Micron has decisively cleared the $125 resistance, confirming a breakout on strong volume. Today’s rally puts the stock within $1 of its record high, with bulls targeting $130, then $135 as the next Fibonacci and psychological levels.

• Support: $123.40 (20-day MA), $118.80 (50-day MA)

• Resistance: $128.36 (ATH), then $135.50

• RSI: 71 – hot, but not signaling exhaustion

• MACD: Bullish crossover with widening divergence

Unless macro shocks derail sentiment, the $130+ zone is well within reach.

Valuation Expands, But Not Yet Stretched on AI Tailwinds

At $127.58, Micron trades at ~6.2x forward sales and ~23x forward earnings, which remains modest compared to peers like Nvidia (~45x EPS) and AMD (~38x). With margins expanding and demand visibility locked through 2026, analysts argue MU is still undervalued relative to its HBM leverage.

That said, China exposure, regulatory overhangs, and insider selling remain overhang risks — though they haven’t stopped the current breakout.

Buy/Sell/Hold Verdict: BUY — Breakout Confirmed, AI Tailwind Intact

Micron’s rally to $127.58 is not a melt-up — it’s a data-backed breakout supported by:

• AI DRAM margin recovery

• HBM3E supply contracts with Nvidia

• Technicals clearing resistance into open air

• Valuation still reasonable vs growth peers

Buy above $125, accumulate on dips toward $123, and target $135–$140 in the next leg. Use trailing stops near $119.

That's TradingNEWS