Micron is rallying on analyst target hikes tied to a DRAM supply squeeze, with the fundamental backdrop legitimately strong: FY2025 revenue of $37.4B represents nearly 49% YoY growth, gross margins expanded to 39.8%, and diluted EPS came in at $7.59. The memory cycle has clearly turned, and HBM demand from AI accelerators is providing a structural tailwind that differentiates this cycle from prior commodity downturns.

The key tension now is whether MU is a continuation trade or a late-cycle setup — analysts raising targets after a strong run often signals diminishing incremental upside rather than a fresh entry point. Investors will want to watch for any signs of DRAM spot price softening, NAND inventory builds, or capex announcements from Samsung and SK Hynix that could signal supply is catching up to demand.