The year is kicking off with another vote of confidence in the durability of the AI buildout, and Micron $MU ( ▲ 10.02% ) is one of the biggest beneficiaries. Shares of the memory chipmaker are up nearly 4% in premarket trading, extending what has already been a massive run.
The move follows strong signals from across the hardware supply chain. Foxconn reported fourth-quarter sales that came in roughly 8% above estimates, while Korean media outlets say Samsung and SK Hynix are planning meaningful production increases this year to meet sustained demand and elevated pricing for memory chips.
AI buildout keeps feeding the memory trade
Micron has already been on a tear since mid-December, climbing more than 40% after posting blowout fiscal Q1 results and issuing a bullish outlook tied directly to AI-driven demand. That momentum only accelerated last week, when the stock jumped more than 10% in a single session.
Those gains were part of a broader pattern that saw hardware stocks dramatically outperform software names, highlighting how investors continue to favor the picks-and-shovels side of the AI ecosystem. Memory, in particular, remains one of the tightest links in the supply chain as AI workloads push capacity and pricing higher.
Hardware still in the driver’s seat
Friday’s surge helped produce a record gap between chip stocks and software stocks, and early trading this week suggests that theme still has legs. While both groups are higher to start the session, capital continues to flow toward companies directly exposed to physical AI infrastructure.
For now, Micron sits squarely at the intersection of constrained supply, rising prices, and relentless AI demand. As long as those forces stay in place, the market is signaling that memory chips remain one of the clearest ways to play the AI cycle in early 2026.