Micron’s AI-Fueled Surge Sparks Debate Over How Long the Boom Can Last

Micron reported a record fiscal third quarter on June 24, generating approximately $41.46 billion in revenue and achieving a GAAP gross margin of about 84.6%. Management also guided for even higher revenue and margins in the upcoming quarter.

The company stated that its high-bandwidth memory (HBM) capacity is largely booked through 2027 into 2028. It also increased its fiscal-year capital expenditures to roughly $27 billion to expand fabrication capacity and launch new greenfield projects.

Markets have responded with an extraordinary rally in Micron’s shares, pushing the stock into the high hundreds and even four-digit territory. The surge has fueled speculation about a potential stock split, alongside the introduction of a tokenized Micron share (MUon) on Ethereum, which increases retail access but introduces custody-related risks.

Investor sentiment remains sharply divided. Bullish commentators view Micron as a long-term winner in AI infrastructure, supported by durable demand and long-term contracts. Meanwhile, skeptics—including analysts at Invesco—warn that memory supply growth in the mid-20% range and capacity expansions expected in 2027 could pressure pricing. Michael Burry has also publicly disclosed a short position.

Key near-term factors to monitor include the timing and pace of new fabrication plant ramps, whether customers begin drawing down inventories or pause orders, and whether Micron can sustain current pricing and margins as additional competitor capacity comes online. ETFs and tokenized instruments may further amplify volatility.

Sources:

• Micron Stock Has Soared Nearly 700% in a Year. Is a Stock Split Imminent?
• Micron (MU) Stock: Why Jim Cramer Says the Memory Shortage Is Here to Stay
• Micron Earned $24.67 Per Share Last Quarter. Its Dividend Is Still 15 Cents. Something Has to Give
• Michael Burry doubles down on AI chip bubble with Micron short
• Top Invesco Analyst: The AI Trade That “Lifted All Boats” Is Over. Now Profitability Decides Winners As “Capacity Will Catch Up”