1. Micron's stock surged 170% in 2025, fueled by AI demand. 2. High-Bandwidth Memory (HBM) growth contributes to Micron's high margins. 3. Current HBM production is fully sold out, with demand extending into 2026. 4. DRAM price increases signal strong pricing power and margin improvement. 5. Cyclical nature of memory stocks remains but may be mitigated by HBM.
FAQ
Why Bullish?
Micron's strategic shift to HBM positions it well amid AI growth. Historically, growth in new tech fields leads to stock appreciation—similar to previous cycles in tech stocks.
How important is it?
The article outlines Micron's growth in a critical sector which can drive significant investor interest.
Why Long Term?
The ongoing demand for HBM linked to AI will solidify revenue streams over several years, differing from traditional cycles.