Roundhill CEO says AI boom is changing how investors value Micron stock

Micron Technology (MU) stock spent years being labeled a cyclical player by Wall Street, but that might be changing.

In a recent Fox News segment, Roundhill Investments CEO Dave Mazza argued that investors are now viewing memory-chip companies a lot differently due to AI.

Memory has become much more than a background component, evolving into core infrastructure for the AI era. That effectively changes how the market views Micron and its potential growth runway, following a momentous rally over the past year.

For context, Roundhill is a firm that operates a lineup of thematic ETFs linked to specific market trends, covering memory chips, generative AI, robotics, and crypto-linked strategies.

Its Roundhill Memory ETF (DRAM) in particular has been tailor-made for the memory-chip space, and Mazza said it has jumped nearly 150% since launch.

To add to that, it has comfortably outpaced the broader market, posting a tremendous 100.97% price return over both six months and one year, compared with 7.47% and 24.32% for the S&P 500 over the same periods.

Mazza specifically names Micron, Samsung, and SK Hynix as key memory chipmakers that are benefiting immensely from that demand.

Roundhill's DRAM ETF is heavily tied to memory-chip winners

The fund's sector breakdown underscores a clear technology-heavy tilt:

• Technology: 70.30%
• Government: 14.97%
• Derivative: 7.86%
• Other: 3.75%
• Cash & equivalent: 3.12%

Top holdings include several major memory-chip names:

• SK Hynix: 24.75%
• Samsung Electronics: 16.34%
• First American Government Obligations Fund: 14.90%
• U.S. government 0% 14-Jul-2026: 7.17%
• Kioxia Holdings: 6.57%
• SanDisk: 5.11%
• Micron Technology: 4.84%
• Nomura Securities International / Micron Technology TRS: 4.49%
• Seagate Technology: 4.19%
• Other assets less liabilities: 3.75%
  
  Source: Seeking Alpha

Roundhill CEO says AI is changing the Micron story

Mazza argues that investors need to rethink how they value companies like Micron.

For the most part, memory-chip players were considered deeply cyclical businesses. Demand would rise, supply could catch up, and then pricing would weaken, resetting stock valuations.

However, AI is breaking up that pattern.

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Demand isn't just coming from smartphones, cars, or laptops; it's increasingly tied to the AI data-center buildout, where memory becomes part of the core infrastructure.

"And one of the reasons for that is that investors are recognizing the supply and demand imbalance that we're seeing with memory chips themselves," Mazza said. "So the market is chronically undersupplied and demand for memory chips has exploded. To your point, memory is everywhere."

He specifically names Micron, Samsung, and SK Hynix as the three companies leading the charge in the memory chips needed to support high-powered AI processors.

Though the likes of Nvidia and AMD attract all the headlines, their ubiquitous chips need tons more memory with each new generation.

As a result, Micron goes from being just a commodity memory supplier to a critical part of the AI infrastructure stack.

Mazza acknowledged the tremendous rally in memory stocks, pushing back against the idea that investors should view it as just another short-term trade.

"Memory historically was a real boom-bust, incredibly cyclical sector where there would exactly became commoditized. But with this AI data center build-out, and every generation of NVIDIA chip, AMD chip, as they get more and more powerful, they need more and more memory to work well."

Unsurprisingly, Morgan Stanley analysts recently doubled their price target on Micron stock, raising it to $1,050 from $520. Their rationale was an AI-driven memory shortage that they expect to persist for years.

JHVEPhoto / Getty Images

Memory's big 3 are powering the AI buildout

The burgeoning memory-chip market is essentially a three-company race.

Samsung Electronics leads the broader DRAM market, reporting a 38% share in Q1 2026, followed closely by SK Hynix at 29% and Micron at 22%, according to Counterpoint Research data.

Samsung has the edge in terms of scale, with exposure across PCs, smartphones, servers, and AI data centers.

SK Hynix has also risen up the ranks in a big way due to HBM demand. HBM sits next to AI accelerators, efficiently feeding data into Nvidia-style chips.

According to Fortune Business Insights, the global HBM market is set to reach $24.81 billion by 2034, growing at a rapid 26.71% CAGR.

Micron is perhaps the most talked-about name in the peer group, boasting an enviable position in the DRAM, NAND, and HBM markets.

Given the relentless demand for HBM, Micron stock has exploded higher, surging 264% over the past six months, and 203% year to date, even after tanking 11% over the past week.

The tremendous jump recently pushed the business past the $1 trillion mark for the first time in late May, according to CNBC.

Wall Street price targets for Micron stock

• Mizuho analyst Vijay Rakesh raised Micron to $1,150.
• Susquehanna analyst Mehdi Hosseini raised Micron to $1,750 from $600.
• UBS analyst Timothy Arcuri bumped Micron to $1,625 from $535, with a buy rating.
• Barclays analyst Tom O'Malley raised Micron to $1,175.
• D.A. Davidson analyst Gil Luria raised Micron to $1,500 from $1,000, with a buy rating.
• Raymond James analyst Melissa Fairbanks raised Micron to $1,100 from $530, with an outperform rating.

Related: Citi quietly resets S&P 500 price target for the rest of 2026

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This story was originally published June 8, 2026 at 3:17 PM.