Micron Stock Jumps 10% on CoreWeave AI Demand: Still a Buy?

Micron Technology shares jumped more than 10% on Nov. 11, trading near $820, after AI cloud provider CoreWeave reported strong third-quarter results the prior evening. CoreWeave's revenue surged 168% year over year to $3.7 billion, and its revenue backlog hit $132.5 billion. Management also raised its 2026 revenue outlook to $13.0–$13.3 billion.

On the earnings call, CEO Michael Intrator said CoreWeave has 10 times as much qualified demand as available capacity through the end of 2027. He also noted that the company has raised prices by 25% in July and another 10% later in the quarter, with pricing continuing to rise in the fourth quarter.

The news lifted much of the chip sector, including Micron, which had fallen about 23% over Nov. 4–5 on concerns about a slower data center build-out following midterm elections. CoreWeave's report helped ease those fears.

However, CoreWeave didn't mention memory once on the call, and its direct link to Micron's sales is less clear. CoreWeave rents out computing power built mainly on Nvidia hardware, so any Micron memory likely comes inside equipment from other vendors. When CoreWeave locked in storage supply in August, it chose Solidigm, a subsidiary of SK Hynix, for enterprise SSDs—a product Micron also sells.

Still, CoreWeave's report is a positive signal for the overall data center build-out, which is a key demand driver for Micron's memory chips.

While CoreWeave's demand is impressive, it's small relative to Micron's AI business. CoreWeave's entire 2026 capital spending plan is $37–$39 billion, whereas Micron's two data center business units alone brought in $34.3 billion in fiscal Q4 2026. These units made up 63% of Micron's revenue, up from 54% a year earlier.

The bigger constraint for Micron is its own supply. Management expects industry DRAM bit shipments to grow at a low-20s percentage rate in 2027 and 2028, with the industry still short on supply. Micron has already signed deals for the vast majority of its calendar 2027 high-bandwidth memory (HBM) supply at much higher prices than a year ago.

Customers are even accepting less memory than they want. CEO Sanjay Mehrotra said Micron sees server unit growth in the high teens in 2026 and 2027, supported by a modestly lower rate of content growth amid tight memory supply. This means more demand from CoreWeave likely won't translate into many more Micron chips in 2027; instead, it could support higher prices and prolong the shortage.

Even after the recent jump, Micron stock is about a third below its record closing high of $1,213.56 reached on June 25. It trades at under 5 times analysts' expected earnings for fiscal 2027, well below the S&P 500's forward P/E of around 18. At that valuation, investors seem to be betting the shortage ends sooner than Micron expects.

CoreWeave's report doesn't change Micron's own outlook, but it does push back on one of the worries that sank the stock last week. A jump that erases some of that slide makes sense, and I still think Micron is worth buying at this price, mainly because of its supply and pricing dynamics.