What happened: Micron (MU) jumped 11% to hit all time intraday record on Tuesday.

What’s behind the move: Booming chip demand is driving the stock higher. Fitch also upgraded memory chip maker’s credit rating from BBB to BBB+ and assigned it a stable outlook.

“The upgrade reflects Micron’s improved financial profile following significant debt repayments over the past 12 months,” Fitch Ratings said in a statement.

The credit rating agency said Micron is also benefiting from surging AI-driven demand for memory products. That demand “is driving materially improved profitability and near-term revenue visibility, with customers including hyperscalers increasingly seeking long-term supply agreements to secure dedicated capacity.”

What else you should know: Shares of Micron, which manufactures memory chips used in everything from smartphones to AI servers, have been on fire this year, helping drive the semiconductor rally as enterprise spending on infrastructure takes center stage.

The stock is up 122% year-to-date, and 690% over the past year.

During their earnings calls last week, Meta (META), Microsoft (MSFT), and Apple (AAPL) all flagged rising memory costs.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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