Micron (MU) stock price has surged 6.25% (54.09 points) in the pre-market hours. The stock also closed 1.94% (16.51 points) higher on July 20, 2026. MU’s latest price rally comes after AMD announced a new deal with Microsoft, expanding its supply to the tech giant for AI computation needs. Let’s discuss what’s happening.
Is The AMD-Microsoft Deal Fueling Micron’s Stock Price Surge?
Micron’s (MU) latest rally follows on the heels of AMD announcing a new deal with Microsoft. According to an official statement, AMD will expand on its CPU, GPU, networking, and software services for Microsoft Azure. AMD is a client for Micron’s memory chips and investors are likely expecting more revenue for the AI memory chip manufacturer following the deal.
Micron (MU) also recently announced a $250 billion investment plan for the US to ramp up domestic production. Both developments may have elevated investor sentiment, leading to a stock price rally.
Micron (MU) is one of the three primary AI memory chip manufacturers, along with SK Hynix and Samsung Electronics. The South Korean KOSPI stock market also opened in the green zone today. KOSPI’s upswing may have also trickled into the US stock market, pushing Micron’s (MU) stock price in the pre-market hours.
Also Read: Google Announces New Chip for AI Model, Alphabet (GOOGL) Climbs
Another factor to consider is the falling inflation numbers in the US. CPI (Consumer Price Index) figures came in at 3.5% for June 2026. Falling inflation may have reignited hopes for an interest rate cut. The move may have aided in Micron’s (MU) stock price surge.
Can MU Sustain Its Rally?
Micron (MU) is riding the AI wave and is expected to hit new peaks in the coming years. Wall Street analysts have become increasingly bullish on MU’s future. However, there are some short-term risks.
Oil prices have surged after a re-escalation in the US-Iran conflict. While inflation has dipped for June 2026, the figures may rise for this month. If inflation surges, Micron’s (MU) stock price may see a dip as investors may decide to de-risk.