Jim Cramer Is Bullish on Micron (MU) as AI Fuels Memory Demand

Micron promoted two executives, appointing Manish Bhatia as president and COO, and Scott DeBoer as president and CTO. Meta reached a settlement with U.S. attorneys general, with analysts estimating minimal revenue impact. KeyBanc views Micron's management changes positively. Nvidia, CrowdStrike, and Salesforce report earnings after the bell.

Micron (MU) targets $1,200 with $100B in contracted revenue and tight supply. Broadcom (AVGO) aims for $450 with $100B AI bookings. CoreWeave (CRWV) eyes $150 despite cash flow challenges. All depend on AI spending and supply constraints.

Micron (MU) and SanDisk (SNDK) rebounded in August due to tight supply and AI demand. Yangtze Memory Technologies (YMTC), a Chinese flash-chip maker, plans a $4.9B IPO to expand production, aiming to become the world's largest NAND flash producer by 2027, potentially pressuring global memory prices.

AMD's strong earnings report, with revenue up 38% to $10.25B, boosted semiconductor stocks after-hours. MU, INTC, SNDK, STX, and WDC shares rose 2%-5.4%. AMD guided Q2 revenue at $11.2B, exceeding estimates. INTC and MU also recently reported strong earnings, driving sector-wide gains. AMD's CEO highlighted AI-driven growth, lifting sector sentiment.

Micron Technology (MU) CEO Sanjay Mehrotra warned that AI-driven memory demand may outpace supply until 2028. He cited long-term customer agreements as evidence of structural demand growth. Analysts like Daniel Newman and Dan Ives agree, while Cathie Wood disagrees, expecting competition to curb pricing. Micron shares fell 4% premarket. The company announced a $10B, 10-year investment in AI and memory research.

Micron Technology (MU) benefits from a memory shortage, with DRAM and NAND undersupply expected to peak in 2027. The company has sold out its 2026 HBM output, secured $100B in multi-year contracts, and reported strong Q3 2026 results. Goldman Sachs forecasts a multi-year deficit, supporting pricing power for producers.