Micron Technology Stock Is Surging Friday: What’s Going On? – Micron Technology (NASDAQ:MU)

Micron Technology Inc. (NASDAQ:IN) stock rebounded nearly 8% in Friday’s premarket trading as investors weighed strong memory-chip prices against concerns about slowing AI infrastructure spending.

S&P 500 futures rose 0.3% after a sharp selloff in semiconductor stocks following the U.S. midterm elections.

Micron Rebounds After 17% Selloff

Micron shares plunged 17% Thursday as investors pulled back from AI-linked chip stocks.

The decline reflected concerns that tighter scrutiny of data-center construction could slow demand for memory chips, GPUs and servers.

However, strong memory pricing continues to support the industry’s outlook.

Counterpoint Research reported that global DRAM revenue surged 369% year over year in the third quarter. Meanwhile, bit shipments increased just 4% sequentially.

The figures suggest pricing, rather than shipment growth, remains a major revenue driver.

Wall Street Divided On AI Chip Outlook

Raymond James Chief Investment Officer Larry Adam remains bullish on AI infrastructure despite the selloff.

Adam said some semiconductor and AI stocks trade at roughly 30% discounts to historical valuations. He also expects earnings growth to remain healthy.

As a result, he favors gradually rebuilding exposure to technology and semiconductor stocks.

However, Dan Ives of Yorkville Ives has turned more cautious.

Ives now expects 10% fewer data centers in his baseline forecast, with potential reductions reaching 15% to 20%.

He also expects Big Tech capital spending growth to peak in 2027, earlier than previously anticipated.

Still, Ives believes AI infrastructure projects face delays rather than outright cancellations. He now favors software over semiconductor stocks.