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• Bank of America named Micron a “top pick” and said the company’s earnings could far exceed Wall Street’s expectations.
• Apple’s discussions with the U.S. government over its memory procurement were another key issue traders were watching for potential catalysts in the memory trade.
• Stocktwits sentiment for MU was ‘bearish,’ unchanged from the previous day. The sentiment was ‘bearish’ for WDC and STX, and ‘bullish’ for SNDK and DRAM.

Micron Technology stock gained for a fifth day on Monday to close above $1,000, reclaiming a psychologically important level, with analysts expecting the stock to run even higher amid record demand for memory chips.

MU shares rose 4.1% to $1,011.75. The stock had dipped below the $1,000 closing-price mark and stayed there since July 2. SanDisk gained nearly 9% on Monday in its sixth straight day of gains, while Western Digital rose 5.4% and Seagate rose 2.2%.

The Roundhill Memory ETF (DRAM) gained 5.4%, also its fifth day in the green. 

Memory stocks, which pulled back from June records, are showing renewed strength in August as the second-quarter earnings season nears its close. 

Strong cloud growth and continued record data-center spending from Big Tech have fueled the momentum, though bears say that much of the long-term memory demand outlook is already priced into the stocks.

Among the newer catalysts, investors speculate that the U.S. government’s pressure on Apple to avoid purchasing memory chips from Chinese producers would be a tailwind for U.S. producers such as Micron. The U.S. Senate has set Aug. 21 as the deadline for Apple to respond to its suggestions.

On Monday, Bank of America named Micron a “top pick” and said the company’s earnings could far exceed Wall Street’s expectations. The investment bank sees Micron’s fiscal 2030 earnings per share (EPS) reaching $200 to $250, well above the current consensus peak estimate of $160 to $170.

The key connector to BofA’s bullish thesis on Micron is SanDisk. BofA’s view is that SanDisk’s “durable growth outlook” provides evidence that the broader memory market could be moving into a structurally stronger period.

MU: Jim Cramer Boost

CNBC analyst and “Mad Money” host Jim Cramer said that Micron has room to run higher and could even double. “I think Micron can double again before the boom comes to an end, assuming there’s no data center slowdown,” Cramer said.

Cramer highlighted share buybacks from memory chipmakers as another bullish signal. Sandisk has $15.5 billion remaining under its share repurchase authorization, while Seagate is working through a $5 billion buyback program announced last year. Western Digital authorized an additional $4 billion in share repurchases earlier this year. 

“They’re taking that money and sending it to you, the shareholder, rather than investing in new capacity,” Cramer said.

While Cramer acknowledged the discomfort of buying after such a dramatic rally, he says strong AI demand and long-term customer agreements can support further gains. Cramer’s Charitable Trust, the portfolio run by CNBC’s Investing Club, recently initiated a position in Micron. 

Retail View On MU

On Stocktwits, the retail sentiment for MU was ‘bearish,’ unchanged from the previous day. The sentiment was ‘bearish’ for WDC and STX, and ‘bullish’ for SNDK and DRAM.

“$MU demand for memory chips is growing by 200% per year and supply is growing by 20% per year. He is right. Buy MU,” a trader said, referring to Cramer’s view.

“Micron is expanding its supply capability… This will give them a big edge in meeting supply and should see continued growth in sales and earnings well into the 2030s.”

Another trader wrote: “$MU just hold and don’t sell for a few years.”

Year to date, Sandisk has surged 653% this year, Seagate has jumped 261%, Micron has gained 254% and Western Digital has climbed 211%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<