What Happened?
Shares of memory chips maker Micron (NYSE: MU) jumped 1.2% in the morning session after Rosenblatt raised its price target for the stock to $300, contributing to the positive momentum.
The stock reached an all-time high of $257.45. Rosenblatt cited limited DRAM supply growth through 2026 and increasing demand as key factors for its positive outlook. This surge in demand was linked to the growth of generative artificial intelligence (AI), which has increased the need for Micron's high-capacity data storage solutions. The company's strong performance and the positive business momentum reflected growing investor confidence in its future prospects.
After the initial pop the shares cooled down to $251.13, up 1.5% from previous close.
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What Is The Market Telling Us
Micron’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 4.7% on the news that markets continued to retreat, as investors re-evaluated the high valuations of stocks that benefited from the artificial intelligence boom.
After a fantastic run, many of those high-flying AI and technology stocks saw investors take profits: selling shares to lock in their gains. This is often called a "market rotation." Money is moving out of the red-hot tech sector (which some worry has become too expensive) and into other parts of the market that investors may currently deem more stable or reasonably-priced.
There's a secondary reason for the cautious mood: The long government shutdown came to an end. Though it's typically interpreted as good news, it also means a flood of delayed economic reports will be released. For weeks, investors were "flying blind" without key updates on the economy's health, like inflation data and the jobs report. In typical "sell the news" fashion, investors may also be taking profits and selling in anticipation that the new data would potentially give the Federal Reserve reasons to slow or even pause future rate cuts.
Micron is up 188% since the beginning of the year, and at $251.13 per share, it is trading close to its 52-week high of $253.30 from November 2025. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $4,051.
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