Memory Prices Surge, Drives Micron and Western Digital Share Gains

Memory prices are climbing amid persistent supply constraints, sending Micron Technology (MU-US) higher on renewed demand outlooks. Lenovo Group (0992.HK) said memory prices rose 40%–50% in the last reporting period, with contract prices potentially doubling this quarter, and shortages expected to last through the year. In related trading, Micron rose about 4% in early trade and closed up 0.88% to $413.97 per share. The firm supplies DRAM to Lenovo, making Lenovo’s commentary a key barometer of pricing power and demand momentum. Activity in high-bandwidth memory (HBM) continued, with Micron executive Mark Murphy stating HBM4 production is accelerating and ahead of schedule, and the product meets key performance standards. Analysts note AI infrastructure expansion, including from Google Cloud and Amazon AWS, is boosting memory demand as vendors like Seagate (STX-US) and Western Digital (WDC-US) raise prices and introduce higher-density, higher-priced offerings. However, Klein & Co. warns PC and mobile OEMs are absorbing the cost, with potential price passes to consumers and demand weakness if supply outpaces demand, posing a near-term risk.