Micron shares rise 11.7% as AI-driven storage demand strengthens the sector

Huoxing Finance reports that on June 12, Micron Technology closed up 11.7% on Thursday, helping stabilize and rebound the global memory chip sector, reigniting market expectations for the sustainability of the memory cycle. Morgan Stanley analysts stated that this correction resembles a temporary pullback within an upward cycle rather than a trend reversal. They noted that AI infrastructure development continues to drive strong demand for DRAM, with memory remaining a critical bottleneck in AI computing expansion. Analysts believe DRAM prices have entered a rapid upward trajectory, as long-term supply agreements begin locking in capacity, shifting the industry from a spot-market-driven to a contract-driven model—a shift that could reshape the storage industry’s valuation framework. Wolf Research also highlighted that demand from AI data centers still far outpaces supply growth, with DRAM and NAND prices likely to remain elevated or rise further over the next several years. Given constrained supply expansion, the price increase cycle could extend to 2027 or beyond. However, analysts caution that historically, memory cycles have often ended due to oversupply following capacity expansion; whether the current high sentiment can persist into 2028 will depend on industry discipline in capacity management and the actual realization of AI demand.