Micron Technology – one of the world’s leading AI memory chip makers, shares today reached a record-breaking high. Another company – SanDisk is also seeing a strong progress graph in the stock market despite the ongoing memory chip shortage.
Both companies – Micron and SanDisk scored a new high in shares after the iPhone producer Apple announced price adjustments for its products due to the AI memory chip crisis in the market.
Apart from the CEO Tim Cook’s announcement, the price target hikes speculated by multiple analysts also contributed to Micron’s groundbreaking share high.
Details reveal that Micron’s stock closed up at 8.7% to $1133.99. SanDisk on the other hand, has jumped to nearly 12% during the session. Both firms saw a gain in after-hours trading, with Micron up by 1.16% and SanDisk by 1.48%.
The strong demand for HBM, DRAM, and NAND flash memory chips for AI data centers is another big reason behind the progress of Micron and SanDisk in the stock market.
Since AI servers utilize 8 to 10 times more memory than outdated servers, many companies have begun stockpiling AI memory chips. According to the current speculations, the memory chip shortage could persist till 2028. How these challenges will impact the growth of Micron is worth looking forward to.
(Image Credits: Micron)
