Micron Technology's stock surged 5.01% in overnight trading, extending a recent rally in the semiconductor sector. The memory chip maker has been experiencing significant upward momentum in after-hours sessions.

The sharp rise is driven by what Goldman Sachs has termed a "super supply shortage cycle" in memory chips. The investment bank recently raised its DRAM price increase forecast from approximately 150% to 250-280% and its NAND price increase forecast from approximately 100% to 200-250%. This unprecedented situation is attributed to AI computing-driven demand surges, increasingly complex HBM manufacturing processes squeezing capacity, and insufficient supply elasticity in conventional DRAM and NAND products.

Micron's HBM (High Bandwidth Memory) orders are reportedly booked through the second half of the year, with premium storage products commanding elevated pricing that is directly boosting margins. The company ended eight consecutive quarters of losses earlier this fiscal year, with revenue growing over 20% sequentially and gross margins turning positive, signaling a strong turnaround in its financial performance.