AI Investors: Buckle Up for Micron’s Mind-Blowing 65% Surge!

Completely rewrite the following article in a fresh and original style. Ensure the new content conveys the same sentiment and message as the original. The rewritten article should:
1. Start with a compelling introduction that hooks the reader (do not label this section).
2. Maintain any lists and points as they are, using numbering and bullet points where necessary. Rewrite the explanations and discussions around these points to make them fresh and original. Ensure the lists are formatted correctly with proper numbering or bullet points.
3. Organize the content into clear, logical sections. Subheadings are not mandatory. Each section should have a subheading only if it enhances readability and comprehension.
4. End with a strong conclusion that summarizes the key points and provides a closing thought or call to action (do not label this section).
Make sure the article flows coherently, is engaging, and keeps the reader interested until the end. Reorganize and structure the content efficiently to enhance readability and comprehension. Use varied sentence structures and vocabulary to avoid monotony. Avoid directly copying any sentences or phrases from the original content. Here is the original content: (Bloomberg) — Micron Technology Inc.’s more than $62 billion artificial intelligence-driven rally is about to face a test of whether it has jumped too far, too fast.Most Read from BloombergShares of the chipmaker are up roughly 65% this year. Much of that advance has come since Micron’s last quarterly report, with the stock hitting a record high this month. Investors will seek proof of earnings growth and solid future demand in the next release due after Wednesday’s market close. The stock rose as much as 2.1% in early trading Wednesday before erasing most of the gains.Expectations are lofty. Wall Street anticipates Micron to report $6.7 billion in revenue in the quarter, a nearly 80% jump from the same period a year earlier. A miss could raise the risk of a selloff, with options contracts signaling that the stock could move 12% in either direction in the trading session following earnings, according to data compiled by Bloomberg.Micron has “ridden the coattails of the whole AI phenomenon,” said Jay Woods, chief global strategist at Freedom Capital Markets. “They’re really going to have to have a story that separates them from their peers.”Where Micron stands out is in its memory capabilities, used in AI applications, which Wall Street sees driving future revenue. Analyst estimates for quarterly adjusted earnings per share are up 9.5% in the last three months, to 50 cents.“We expect Micron to deliver a beat-and-raise as we enter one of the largest memory cycles in history,” Hans Mosesmann of Rosenblatt Securities Inc. wrote in a Tuesday note. That growth will be driven by factors that include demand for artificial intelligence applications and a ramp-up in high bandwidth memory chips that in turn reduces supply for traditional Dynamic Random-Access Memory components, he added.At $225, Mosesmann’s price target for Micron is the highest on Wall Street, according to data compiled by Bloomberg. The company overall has 37 buy ratings, two holds and one sell.Still, in the event of disappointment, any potential post-earnings weakness could be a good time to snap up shares, according to JPMorgan Chase & Co. analysts led by Harlan Sur.“We would use any near-term pull-back in the stock to continue to accumulate shares” the analysts wrote in a June 24 note, adding that they see the current memory segment recovery sending the stock up from current levels to $190 to $200 a share.Story continuesTech Chart of the DayNvidia Corp. shares jumped 6.8% Tuesday, its best one-day gain since late May, snapping a three-day losing streak that erased more than $400 billion in market value. Shares were slightly lower in early trading Wednesday.Top Tech NewsOpenAI’s abrupt move to ban access to its services in China is setting the scene for an industry shakeup, as local AI leaders from Baidu Inc. to Alibaba Group Holding Ltd. move to grab more of the field.Troubled French IT firm Atos SE said that Onepoint, its largest shareholder, has withdrawn from bail-out talks and that billionaire Daniel Kretinsky’s EPEI has expressed an interest in restarting discussions.Advantest Corp. stands to benefit as a boom in AI development makes chips more complex in coming years, boosting demand for the semiconductor testing equipment it supplies, the company’s chief said.The Biden administration plans to award $75 million in semiconductor subsidies to Entegris Inc., marking the first grant to a company focused on supplying parts to chipmaking factories and the latest in a broader push to bring production back to the US.SoftBank Group Corp. founder Masayoshi Son will sketch out plans to bring AI-infused medical care to Japan, making a rare public appearance to drive home his resurgent ambitions in artificial intelligence.Earnings Due Wednesday–With assistance from Subrat Patnaik.(Updates stock moves at market open.)Most Read from Bloomberg Businessweek©2024 Bloomberg L.P.