Micron Technology Inc. (MU) saw its stock climb following remarks from CEO Sanjay Mehrotra, who emphasized growing demand for high-capacity memory solutions fueled by artificial intelligence. The company's strategic positioning in AI infrastructure is gaining investor confidence.
- Micron CEO Sanjay Mehrotra cited escalating AI demand as a primary driver of memory usage.
- AI-related memory demand expected to grow at over 25% CAGR through 2028.
- Micron’s enterprise memory segment now represents 38% of total revenue.
- Projected 40% sequential revenue increase in memory segment in H1 2027.
- Institutional trading volume rose 12% in two weeks, indicating investor confidence.
- HBM and DDR5/GDDR6 products are key enablers in AI data center infrastructure.
Micron Technology Inc. (MU) experienced a notable uptick in share price after CEO Sanjay Mehrotra underscored the increasing need for advanced memory technologies driven by artificial intelligence applications. Speaking on CNBC, Mehrotra highlighted that current AI workloads require significantly more memory bandwidth and capacity than previous computing paradigms, stating, 'We need more and more memory to address that demand.' This direct acknowledgment of market dynamics has resonated with investors focused on semiconductor growth areas. The statement comes amid broader industry trends where generative AI models are pushing data center infrastructure to its limits. Micron’s DDR5 and GDDR6 memory products, along with emerging HBM (high-bandwidth memory) offerings, are positioned as critical components in next-generation AI accelerators. Industry analysts estimate that AI-related memory demand could grow at a compound annual rate exceeding 25% through 2028, with data centers accounting for over 60% of total DRAM consumption in that segment. Investor attention has intensified following Micron’s recent guidance update, which projected a 40% sequential increase in memory revenue during the first half of fiscal 2027, largely attributed to AI-driven demand. This outlook aligns with increased procurement activity from major cloud providers and AI chipmakers such as NVIDIA, AMD, and Intel. As a result, Micron’s enterprise memory segment now accounts for approximately 38% of total revenue, up from 29% in the same period last year. The rally in MU shares reflects broader market sentiment favoring semiconductor firms with exposure to AI infrastructure. Traders have also noted a 12% rise in institutional buying volume over the past two weeks, signaling strong conviction in long-term memory growth. These developments suggest that Micron is well-positioned to benefit from sustained investment in AI hardware, particularly as global data center capacity expands to meet rising compute needs.