Micron Technology (MU) stock is soaring 5.09% in pre-market trading on Friday, riding the wave of positive sentiment in the memory chip sector. The surge comes after reports that Samsung Electronics has raised prices on key memory chips by up to 60% since September, signaling a potential turnaround in the industry.

According to sources familiar with the matter, Samsung's price hike is a response to a global shortage triggered by surging demand for artificial intelligence data centers. This move has sparked a chain reaction across the industry, with shares of several US memory chipmakers, including Micron, rising in response to the news.

The shortage of memory chips, primarily used in servers, has led to panic ordering among companies rushing to expand their AI infrastructure. This sudden increase in demand is expected to benefit major players in the memory chip market, with Micron well-positioned to capitalize on the trend. Analysts suggest that the tight supply and higher prices for DRAM and NAND, coupled with booming demand for high-bandwidth memory used in AI servers, are driving the gains in the sector.

As the memory chip market experiences this significant shift, investors are closely watching Micron and its peers for potential long-term benefits from the AI-driven demand surge. The company's stock performance today reflects growing optimism about its prospects in this evolving landscape.