Parts of the market are asking if we're already nearing peak tightness and margins in the memory chip space as the shortage persists.

As generative AI models get more sophisticated, companies need more memory and faster memory, Micron CEO Sanjay Mehrotra said in January.

Micron Technology is expected to beat on its fiscal second-quarter results due to a surge in demand for AI-linked hardware that has boosted memory chip prices.

Micron's stock has soared this year while its tech peers have struggled, as the impact of rising memory costs ripples across the industry.

While the memory and storage solutions company fell in premarket trading Thursday, analysts believe the outlook for the stock is even stronger than before.

Parts of the market are asking if we're already nearing peak tightness and margins in the memory chip space as the shortage persists.