Micron Surges 6% on AI Memory Optimism as Taiwan Union Dispute Remains Unresolved

Micron Technology shares advanced roughly 6% on September 4 as part of a broad semiconductor sector rally, with memory stocks leading gains on strong AI-driven demand. SanDisk climbed as much as 8% on the same session, with analysts pointing to an accelerating NAND pricing cycle and robust data center appetite for high-bandwidth memory as the primary catalysts.

Lynx Equity analyst maintained a $1,325 price target on Micron and flagged a technical breakout for both Micron and SanDisk as market volatility eased. MarketWatch reported that Micron is increasing production capacity of its higher-margin memory offerings, specifically HBM, which is in strong demand from AI customers. Micron's HBM3E supply is already sold out through 2027, with HBM4E expected to ramp in 2027. One analyst note set a high bar for the upcoming fiscal fourth-quarter report, calling for revenue above $54 billion, gross margins exceeding 86%, and EPS of at least $33 to avoid a sell-off.

The gains came despite a hotter-than-expected August jobs report that briefly pushed the odds of a Federal Reserve rate hike above 50%, though easing Treasury yields earlier in the session had already provided a tailwind for tech stocks. SanDisk separately reported sales growth of 372% in its most recent quarter, underscoring the strength of the broader memory recovery.

On the labor front, Micron failed to reach an agreement in its first mediation session with Taiwan's Taoyuan union over employee bonuses, and a second mediation meeting has been scheduled. More than 80% of participating union members voted in favor of potential strike action, though Micron said it plans to disclose its largest-ever Taiwan performance bonus in October, a disclosure it is framing as evidence of its commitment to workers.