Why Micron stock is rallying today

Investing.com -- Micron Technology shares are up around 3.5% on Thursday, with analysts at Mizuho highlighting two positive developments that could strengthen the company’s position in both the PC and mobile markets.

Mizuho TMT specialist Jordan Klein called Micron his “Favorite out of favor semi long idea,” citing signs of resilience in personal computer demand and a potential market share gain in mobile DRAM supply.

On PCs, Klein said that HP Inc. results “sounded better than feared on health of overall PC market. Outlook to me way better vs all the bears talking up massive pull forward in Q2 from tariffs. PCs demand/growth not ripping higher, but not set to collapse either and units will still growth this year. Corp PC refresh on track.”

The more significant catalyst, according to Mizuho, came from a report in Digitimes Asia about Micron’s relationship with Samsung Electronics.

Klein noted that the article suggested Micron “stands to potentially win more mobile DRAM from Samsung as latter continues to struggle with their internal DRAM yields&heat mgmt. on 10nm 1b process node.”

Currently, Micron supplies 40% of the DRAM in Samsung’s Galaxy S25 smartphones, with Samsung producing the remaining 60%. However, Mizuho explained that according to the report, Samsung is considering “raising MU share to 60%.”

Klein described this as “the best part,” pointing out that Micron’s stronger role has “sharpened its negotiating position.”

He said that in third-quarter pricing talks, “Micron was reportedly the most aggressive of the three DRAM providers, seeking about a 10 percent hike… The discussions were delayed but eventually settled closer to Micron’s terms.”

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