Micron Technology (MU) saw its stock price surge 5.10% in intraday trading, outperforming the broader semiconductor sector rally. The significant uptick comes on the heels of strong earnings reported by South Korean memory chip maker SK Hynix, which has reignited investor interest in memory chip stocks and their potential in the growing artificial intelligence (AI) market.

SK Hynix reported a first-quarter net profit that more than quadrupled from the same period last year, primarily driven by high-bandwidth memory (HBM) chips - a crucial component in advanced AI processors. The company also reiterated its forecast of HBM demand doubling in 2025, despite potential volatility from geopolitical factors. This positive outlook has bolstered confidence in Micron's prospects, as the company aims to capture a 20% to 25% share of the HBM market by 2025, according to analysts at BofA Global Research.

Adding to the optimism, Mizuho Securities analyst Vijay Rakesh recently reiterated an Outperform rating on Micron stock with a $124 target price, citing the company's strong positioning in HBM chips. Micron's recent announcement of a new business structure, which includes a dedicated cloud memory division, further underscores its commitment to capitalizing on the AI-driven demand for high-performance memory. As the market reassesses Micron's potential in the AI space, today's stock surge suggests a renewed investor appetite for memory chip makers as key players in the ongoing AI revolution.