Micron Technology (MU), American Airlines Group Inc. (AAL), and Applied Materials Inc. (AMAT) surged to fresh highs on Thursday as investors piled into the stocks. MU stock soared nearly 16% following its strong third-quarter results, AAL stock closed up 0.77%, and AMAT surged more than 13% after announcing new chipmaking systems. The rallies were driven by AI-driven demand optimism for Micron's memory chips, declining oil prices easing cost pressures for American Airlines following the easing of geopolitical tensions in the Middle East, and Applied Materials' introduction of advanced 3D chip architecture technologies. The moves reflect continued investor enthusiasm for AI infrastructure and improving conditions in the airline sector.
Micron Surges Following Strong Third-Quarter Results
MU stock surged to an all-time high of $1,255 in the intraday trading session on Thursday after the company's third-quarter results boosted optimism for sustained AI-driven demand for its memory chips.
On Wednesday, the company said its quarterly revenue surged 346% to $41.46 billion, surpassing analysts' expectations. Earnings came in at $25.11 per share, also beating Wall Street expectations of $20.28 per share.
"Our demand for HBM [high bandwidth memory], not just in '27, but even '28 is well above our ability to supply across all the different HBM flavors. And it's also true -- the same thing is also true, by the way, for non-HBM DRAM as well," Micron Chief Business Officer Sumit Sadana said on the investor call following results.
Following the results, multiple Wall Street analysts raised their price targets on Micron. Melius Research's Ben Reitzes has the highest price target on the company at $2,200, indicating an upside potential of more than 81% from its last close. According to Koyfin data, 43 analysts have a 12-month average price target of $1,365.08 for the company, indicating about 12.5% upside potential. MU shares have already gained 284.74% so far this year.
On Stocktwits, retail sentiment toward the company has remained in the "extremely bullish" range over the past 24 hours amid "extremely high" message volume.
American Airlines Gains on Declining Oil Prices and Analyst Upgrades
Shares of AAL surged to a 52-week high of $18.04 on Thursday as declining crude prices eased cost pressures for the carrier.
Benchmark oil prices dropped on Wednesday to their lowest level since before the Iran war, as a peace agreement between Iran and the U.S. eased supply fears, as stranded tankers reportedly began to transit through the Strait of Hormuz.
The company also received a series of price target updates from Wall Street analysts. Barclays raised the price target on American Airlines to $19 from $16 after adjusting targets in the airline space as part of a second-quarter earnings preview. The analyst said that airlines will guide Q3 unit revenue higher, supporting a stronger margin outlook, especially if energy prices continue to trend lower. Middle East peace has "revived interest" in U.S. airline stocks as "robust" travel demand faces flat industry capacity growth, the firm said, according to TheFly. Jefferies, UBS, and Bank of America also hiked price targets on AAL.
AAL stock has climbed 13.5% so far this year. On Stocktwits, retail sentiment around the company has stayed in the "bearish" territory over the past 24 hours.
Applied Materials Rises After Announcing New Chipmaking Systems
Applied Materials shares rose to a fresh annual high of $669.22 on Thursday after the company introduced a suite of new chipmaking systems to build advanced 3D chip architectures.
The company unveiled new DRAM, advanced packaging, metrology, and deposition technologies designed to improve AI chip performance, enhance high-bandwidth memory (HBM) manufacturing, boost production efficiency, and increase chip yields.
AMAT also got a boost from Micron's upbeat earnings. The companies have a long-standing partnership to advance AI and high-performance computing technologies.
The company also received a price target hike from Jefferies, which raised the target on its shares to $770 from $510 and kept a 'Buy' rating after the company hosted its advanced packaging event. DRAM and advanced packaging are expected to outpace overall wafer fab equipment growth, led by AI, as the semiconductor industry approaches $1 trillion in revenue, the analyst said, per TheFly. Jefferies said that it sees Applied Materials as an outperformer with "strong exposure" to leading-edge foundry and DRAM. Bank of America also recently raised its price target on AMAT to $720 from $540 and kept a 'Buy' rating on the shares.
On Stocktwits, retail sentiment around AMAT stock was in the 'bullish' territory. The company's shares are up about 148% so far this year.
FAQ
What were Micron's third-quarter earnings results?
Micron reported quarterly revenue of $41.46 billion, up 346%, and earnings of $25.11 per share on Wednesday, both surpassing analysts' expectations of $20.28 per share.
Why did American Airlines stock rise on Thursday?
AAL stock closed up 0.77% at a 52-week high of $18.04 as declining oil prices eased cost pressures following the easing of geopolitical tensions in the Middle East, and multiple Wall Street analysts raised price targets on the stock.
What new products did Applied Materials announce?
Applied Materials introduced new DRAM, advanced packaging, metrology, and deposition technologies on Thursday designed to build advanced 3D chip architectures and improve AI chip performance and high-bandwidth memory manufacturing.
