A Micron insider bought $8 million worth of the company's stock, what does that tell investors?

A member of the board of directors of memory chip maker Micron Technology, Mark Liu, bought 23,200 shares of the company's stock this week, according to a disclosure on the U.S. Securities and Exchange Commission's website. The transactions were made on Tuesday and Wednesday, and the average price was about $337 per paper - on Monday, January 12, quotes Micron updated the record at $345, then slightly corrected. Total purchases amounted to $7.8 million, MarketWatch calculated. With this, Liu gave a strong signal to the market, the publication notes. Now the insider directly owns 25,910 shares of Micron.

Quotes of the company rose in price at the auction on Friday, January 16, by 5.5% - to $ 354.2, which was their new maximum value for the entire trading period. Thus, the package of shares purchased by Liu rose to $8.2 mln.

Usually, corporate insiders buy shares on a decline, and thus send investors a signal that they are ready to put their own money on the recovery of quotations, explains MarketWatch. However, Mark Liu bought Micron shares at a time when they were near all-time highs. This step indicates that Liu sees the securities potential for further growth, emphasizes the edition.

In addition, MarketWatch notes, Liu has deep industry knowledge. He has worked as a top executive at TSMC for more than three decades, including as co-CEO and executive chairman. He now heads J&M Copper Beech Ventures, a multi-strategy investment fund, according to his biography on Micron's website.

Micron securities are in a phase of rapid growth: only for the last three months they have risen in price by 75%, for the year - by 235%. And since the beginning of 2026, the market value of the company has increased by almost a quarter.

The rally triggered a boom in artificial intelligence, which dramatically increased demand for memory chips. It now far exceeds supply, so Micron has significantly raised prices for both RAM (DRAM) and flash memory (NAND). Some analysts hope this trend indicates a long-term structural change in a market that has traditionally been considered cyclical, MarketWatch notes.

According to the publication, out of 45 analysts tracking Micron shares, 40 advise to buy them, three - to keep them in the portfolio, and only two - to sell. At the same time, the consensus price is only 3.6% above the closing level on January 15.

This article was AI-translated and verified by a human editor