Micron Technology (NASDAQ:MU) shares surged 5.39% in Monday's pre-market trading, riding a wave of optimism surrounding artificial intelligence (AI) memory demand and positive industry outlook. The stock's significant jump comes amid a broader rally in data storage stocks and follows recent updates from industry peers.

The upward momentum for Micron appears to be driven by multiple factors. Notably, South Korean rival SK Hynix reported an upbeat memory chip forecast and presented its next-generation product plans, including several customized AI memory chips at the SK AI Summit 2025. This positive outlook from a major industry player has bolstered investor confidence in the memory chip sector as a whole.

Adding to the bullish sentiment, there are reports of tight DRAM supply and expectations of price increases. According to industry sources, Samsung has temporarily halted contract price announcements for some memory chip products until mid-November, as spot prices have tripled. Research firm TrendForce projects conventional DRAM prices to rise between 18% and 23% in the fourth quarter, indicating a strong demand environment that benefits Micron and its peers.

The surge in Micron's stock price reflects growing investor optimism about the company's positioning in the AI-driven memory market. With the entire 2025 production capacity already reportedly sold out and analysts projecting significant growth in the high-bandwidth memory (HBM) market, Micron appears well-positioned to capitalize on the increasing demand for advanced memory solutions in AI applications.