Micron Technology Inc (MU) shares opened over 10% up this morning after the computer memory chips manufacturer received a bullish note from a senior Citigroup analyst.
On Thursday, Christopher Danely maintained his “buy” rating on the Nasdaq-listed firm and raised his price target to $175, indicating potential “upside” of more than 13% from current levels.
Danely’s positive view on Micron stock is particularly significant as the semiconductor company is already trading about 140% above its year-to-date low in the first week of April.
How Oracle earnings bode well for Micron stock
Part of the reason why MU stock is extending gains today is Oracle Corp’s (NYSE: ORCL) recent earnings, which signalled a massive runway for hyperscaler investments in AI workloads.
Oracle ended its latest reported quarter with a whopping 359% year-on-year increase in remaining performance obligations (RPOs), now totalling $455 billion.
Plus, the company’s management guided its AI-driven cloud infrastructure revenue to roughly 8x through the end of this decade to $144 billion.
Micron, a key supplier for DRAM and NAND used in data centres and AI servers, stands to directly benefit from continued inference and edge computing-driven artificial intelligence demand.
ORCL’s bullish outlook reinforces the thesis that memory demand will remain elevated – and that could prove a major tailwind for Micron shares moving forward.
not just for training models but for deploying them at scale across enterprise environments.
AI inference: the next big catalyst for MU shares
Citi analyst Christopher Danely remains constructive on MU shares primarily because the AI boom is entering a new chapter – moving beyond model training into inference and real-time deployment.
Inference workloads require fast, efficient memory solutions, including mobile DRAM and high-density NAND, which Micron specialises in.
As artificial intelligence moves closer to the edge, into smartphones, IoT devices, and autonomous systems, the need for compact, high-performance memory intensifies.
In fact, Oracle’s chairman Larry Ellison recently emphasised the vast opportunity in inference, calling it “the next frontier” for enterprise AI.
And Micron’s expanding footprint in enterprise SSDs and its competitive edge in next-gen memory architectures position it to capture this demand surge.
Should you invest in Micron Technology today?
Despite the memory sector’s reputation for boom-bust cycles, MU stock is entering a structurally favourable phase where demand is expected to outpace supply through 2026.
Its technology roadmap now rivals top-tier competitors, and its exposure to AI infrastructure gives it a secular growth tailwind.
All in all, Micron’s fundamentals are aligning with macro tailwinds – and a 0.30% dividend yield tied to the AI stock makes it all the more attractive to own for income-focused investors in 2025.
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