Micron Shares Jump 7.5% as DRAM Supply Forecasts Are Revised Lower
Micron shares surged 7.5% in Wednesday trading after analysts trimmed DRAM supply-growth forecasts, easing fears of intensifying competition. The rally reflected expectations that Samsung and SK Hynix will slow capacity expansion, supporting firmer memory-chip pricing this quarter.
1. Stock Rally Details
Micron shares climbed 7.5% on Wednesday, marking the biggest one-day gain since last November. Trading volume spiked as investors reacted to revised industry forecasts suggesting a tighter balance between DRAM supply and demand.
2. Analyst Forecast Revisions
Several major brokerages reduced their 2026 DRAM supply-growth estimates from 20% to 12%, citing slower fab ramp-ups among leading suppliers. These downward revisions have boosted projections for chip prices by 8% this quarter, lifting Micron’s near-term revenue outlook.
3. Competitive Landscape Shift
Samsung and SK Hynix have reportedly delayed expansion of new memory fabs, which analysts say will limit market oversupply. With fewer new gigabytes hitting the market, Micron stands to benefit from more stable pricing and improved gross margins.