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The explosive growth of AI data centers has ignited unprecedented demand for NAND flash and other memory solutions, propelling Micron Technology (MU) from a stagnant performer to a market darling.

MU's stock largely traded sideways throughout the first half of 2025, but starting in late summer, as hyperscalers ramped up infrastructure spending, its shares ignited. Over the past six months, MU has skyrocketed nearly 260%, fueled by an insatiable appetite for its high-capacity storage chips.

Yet, despite this momentum and a lengthy runway for expansion as hyperscalers build out massive data footprints, some investors remain on the sidelines, wary of volatility in the cyclical memory sector. Samsung, though, just gave those investors 100 reasons to buy MU stock now.

Samsung's Signals a Memory Supercycle

Samsung – the world's largest NAND flash producer – stunned the industry by hiking contract prices for NAND memory by over 100% in the first quarter of 2026. This aggressive move, finalized in late 2025 with major customers, far exceeds earlier projections of only a 33% to 38% increases following a similar bump in Q4 2025. The surge applies across NAND used in enterprise solid-state drives (eSSDs), smartphones, PCs, and other devices, driven by a severe supply-demand imbalance.

At the heart of this is the AI boom. Exploding needs for high-capacity storage in AI infrastructure have outpaced supply. On-device AI in consumer gadgets has further amplified demand for faster, denser NAND. Meanwhile, production hasn't kept up: No significant NAND expansions occurred in 2025, and Samsung's conservative investments limited output growth.

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SK Hynix, the No. 2 player, is mirroring this with similar price adjustments, while reports suggest SanDisk (SNDK) is planning comparable increases. This market-wide shift hands pricing power back to manufacturers after years of downturns, heralding what analysts call a "memory supercycle" for key players like Samsung, SK Hynix, and Micron.

Micron, ranking third in NAND production but growing rapidly, stands to reap substantial benefits. The company has aggressively expanded its NAND capabilities, positioning itself as a nimble competitor in a tightening market. These price hikes translate to pure high-margin gains, potentially pushing Micron's gross margins above 73% to 75% in upcoming quarters.

Micron's HBM Dominance Amplifies the Upside

Beyond NAND, Micron is surging in the high-bandwidth memory (HBM) segment, critical for AI accelerators like GPUs. HBM demand has exploded alongside AI compute needs, with Micron emerging as a top-tier supplier. Holding a strong No. 3 position here, too, MU's advanced HBM3E and upcoming HBM4 technologies have secured key deals with Nvidia (NVDA) and other chipmakers. In recent quarters, Micron's HBM revenue has grown exponentially, contributing to overall sales jumps of over 80% year-over-year.

These tailwinds have evolved into gale-force winds. AI-driven demand shows no signs of abating, with hyperscalers forecasting continued multi-billion-dollar investments in data centers. For Micron, this means sustained pricing leverage across its portfolio. The stock's 260% run reflects this, but with memory shortages expected to persist into Q2 and beyond, the upward trajectory looks unbreakable.

Bottom Line

Although Micron trails its peers in sheer scale, it will capitalize on the identical market forces prompting Samsung's 100% NAND price doubling. Expect Micron to follow with its own hikes, channeling those gains straight to the bottom line amid robust gross margin expansion.

With solid momentum in NAND, HBM, and broader segments like DRAM, the company's fundamentals are rock-solid. If you needed another reason to buy MU stock, Samsung just gave it to you – multiplied by 100.

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