At an industry conference, executives from Micron announced that the company has officially kicked off mass production and begun shipping its latest high-bandwidth memory chip, HBM4. This move has effectively dispelled market anxieties regarding Micron's perceived lag in the HBM4 race, particularly in comparison to its South Korean rivals. Earlier, there were apprehensions that Micron might fall behind in the fierce competition.

Analysts at Morgan Stanley have responded by elevating Micron's target stock price from $350 to $450. They pointed out that the difference in supply timing between Micron and SK Hynix is not as significant as once feared, and they expect further price hikes for HBM4 within this year. Similarly, analysts from BNP Paribas have weighed in, suggesting that the market's concerns over Micron's standing in the HBM4 arena have been exaggerated. They emphasized that the current supply-demand balance for HBM chips is setting the stage for a profitable pricing environment for producers.

Consequently, Micron's stock price experienced a notable 6.6% uptick on Wednesday, fueling a broader rally in the memory chip sector. Nevertheless, it's important to acknowledge that market risks persist, and investors are advised to proceed with caution.