Micron Technology's stock surged 5.09% during Wednesday's intraday trading session, extending its strong performance this year. The memory chipmaker is benefiting from insatiable demand for high-bandwidth memory (HBM) required for artificial intelligence systems, coupled with a global memory shortage that is driving up prices.

The surge follows reports that Micron is investing heavily to break an AI memory bottleneck, with shortages and rising prices for HBM as demand accelerates. Industry analysis indicates memory prices could spike up to 50% by mid-2026 due to capacity constraints, with manufacturers prioritizing specialized AI hardware over consumer-grade memory.

Adding to the bullish sentiment, billionaire hedge fund manager David Tepper of Appaloosa Management increased his stake in Micron by 200% to $428 million in the fourth quarter, making it his fund's fourth-largest holding. This significant bet reflects confidence in Micron's position as a key beneficiary of the AI infrastructure buildout, with the stock already up nearly 30% year-to-date before today's surge.