Micron Technology stock was surging on Thursday after Apple CEO Tim Cook said the iPhone maker would hike prices, giving investors yet another reminder of the boom in demand for memory chips.
Shares of Micron jumped 4.4% to $1,089 ahead of the opening bell. Futures tracking the S&P 500 were 0.8% higher after President Donald Trump signed a memorandum of understanding to end the Iran war.
The gains put the stock on track to surpass the all-time closing high of $1,087.99 it hit on Monday. Micron has already notched 34 record closes this year.
The artificial-intelligence craze has driven up demand for memory in data centers, which has led to investors rethinking the low forward price-to-earnings ratio that Micron shares normally fetch.
Cook said in an interview published on Wednesday that Apple planned to raise its prices in a bid to cancel out the impact of surging memory and storage chip costs.
"Unfortunately, price increases are unavoidable," he said in an interview with The Wall Street Journal.
"We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, but the situation has become unsustainable."
Micron stock was up 267% for the year through Wednesday's close. Barron's argued earlier this month that the stock remains undervalued, because the company's hardware is crucial for AI servers.
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