AI-driven storage chip demand continues to surge, Micron Technology, Inc. (MU.US) stock price has been continuously soaring, with a market value exceeding 700 billion US dollars for the first time.

Driven by continuous demand for artificial intelligence, the stock price of storage chip leader Micron Technology, Inc. (MU.US) surged over 11% on Tuesday, closing at $640.2, with a market value reaching approximately $721.98 billion, breaking through the $700 billion mark for the first time in history. One of the important factors driving the stock price increase is the market's reevaluation of the cyclical nature of the storage chip industry. The latest report from research firm IDC indicates that the storage chip market is expected to break away from the traditional cyclical fluctuation pattern due to the support of artificial intelligence demand. This viewpoint is significant for investors. Historically, the valuation of the storage chip sector has been limited due to its strong cyclical characteristics, but the continuous demand growth brought by AI is changing the market's perception of the industry. Micron's recent stock performance has been exceptionally strong, rising by approximately 53% in April alone; rising by about 24% since May; with a cumulative increase of 124% this year, adding approximately $395 billion to its market value; skyrocketing nearly 696% in the past 12 months, increasing its market value by over $620 billion; in just the past three trading days, the company's market value increased by approximately $133 billion. Driven by the surge in AI computing demand, stocks of companies related to storage and data infrastructure have generally risen. Peers such as Western Digital Corporation (WDC.US), Seagate Technology Holdings PLC (STX.US), and SanDisk (SNDK.US) have risen by approximately 170%, 180%, and 492% respectively since the beginning of the year. Analysts point out that the surge in data storage demand from AI applications has made storage chips an important component of AI infrastructure. However, the AI investment frenzy has also put pressure on hard drives and storage supply chains, with capacity constraints becoming increasingly evident. Analysts from Melius point out that storage chips are becoming a core component of the AI industry chain, closely related to AI chips, hardware, and cloud computing infrastructure. Despite the significant rise in stock prices, Wall Street as a whole maintains an optimistic outlook. FactSet data shows that out of the 50 analysts tracking the company, the average rating for Micron remains "Buy," with a target price of $583.83.