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Micron (MU) stock is inching higher on Aug. 5 after billionaire Elon Musk highlighted memory supply as the ultimate bottleneck for the global artificial intelligence (AI) buildouts.
“Memory output is increasing by around 20% per year, but the demand is increasing by 200% per year, maybe higher,” Musk said on the SpaceX (SPCX) earnings call last night.
Note that Micron shares have already been a blockbuster investment in 2026. They currently trade at about 3x their price at the start of this year.
Significance of Musk’s Remarks for Micron Stock
Musk’s remarks are largely bullish for MU shares given the company is the leading manufacturer of high-bandwidth memory (HBM) and DRAM.
For the Nasdaq-listed firm, the supply-demand imbalance essentially means immense pricing power and multi-year order visibility.
On the earnings call, the billionaire went on to “thank Micron Technology for giving us significant memory allocation,” which reinforces the firm as an indispensable pillar of the AI hardware supply chain.
His comment helped MU rip through its 20-day moving average (MA) on Wednesday, indicating bullish momentum could sustain in the near term.
Where Options Data Suggests MU Shares Are Headed
Following Micron’s blowout Q3 results, featuring a more than 4x increase in top-line revenue, the derivatives market remains bullish for the AI stock as well.
According to Barchart, the put-to-call ratio on contracts expiring mid-October sits at 0.63x currently, signaling a strong bullish skew.
And the upper price on those contracts is set at $1,174 at writing, indicating potential for an over 26% rally in Micron shares within the next three months.
Under the terms of federal government grants, Micron is restricted from executing large-scale, discretionary share buybacks in the second half of 2026.
However, because its HBM and DRAM sales are generating record cash flows, MU is broadly expected to announce a new plan once that restriction expires on Dec. 9.
What’s the Consensus Rating on Micron?
Despite Micron’s explosive move to the upside in 2026, Wall Street sees significant further upside in the back half of this year.
The consensus rating on MU stock remains at “Strong Buy,” with the mean price objective of $1,487 indicating potential upside of more than 60% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
