Micron Technology (MU) shares surged 5.01% in pre-market trading on Wednesday, as a wave of positive sentiment swept through the semiconductor sector, fueled by robust AI-driven demand for memory chips and a bullish analyst call.

The rally was underpinned by an upward revision of the 2026 global semiconductor market forecast by Omdia, which now expects revenue growth of 94.1% year-on-year, driven largely by AI demand exceeding global supply. Memory IC revenue is projected to account for over half of total semiconductor revenue this year, with High Bandwidth Memory (HBM) supply remaining critically tight. Micron, as one of only three global manufacturers capable of mass-producing HBM alongside SK Hynix and Samsung, stands to benefit directly from this sustained supply-demand imbalance.

Adding to the momentum, Mizuho reiterated its Outperform rating on Micron, citing the recent stock price weakness as an attractive entry point. The firm highlighted Micron's 16 long-term customer agreements totaling $22 billion in commitments and noted that supply tightness could extend beyond 2027. Separately, reports of Singapore's Temasek planning to invest in South Korean memory rivals SK Hynix and Samsung boosted overall chip sector sentiment, lifting Micron alongside its peers.