Micron Could Be the Next Nvidia? Massive Bullish Bets on AI Upside | Smart Money Option

$Micron Technology (MU.US)$ has recently become one of the hottest AI trades in the market. Fueled by surging demand for AI infrastructure and exploding interest in HBM (high-bandwidth memory), MU shares have rallied sharply in recent weeks, briefly pushing the company's market capitalization above $1 trillion and placing it firmly among the world's tech giants.

As the stock continued its explosive move higher, Micron's options market also saw several unusually large trades emerge. Most notable was not a simple bullish call purchase, but a classic institutional-style synthetic long position, alongside a massive high-strike call sweep.

The most eye-catching activity involved two nearly simultaneous trades: buying the MU June 18, 2026 $920 Call while simultaneously selling the MU June 18, 2026 $920 Put. Both trades shared the same expiration date, strike price, and nearly identical size, while also carrying Multi-Leg tags — a strong sign of institutional positioning.

More importantly, the call premium was approximately $85.88, while the put premium was around $92.88, resulting in a net credit of:

92.88−85.88=7

In other words, the institution established a position resembling a long MU stock position at nearly zero cost — while even collecting a small premium upfront.

This structure is essentially a Synthetic Long. The logic is straightforward: buying the call captures upside exposure, while selling the put creates an obligation to buy shares on weakness, with the put premium helping finance the call purchase. If MU continues rising, the payoff behaves similarly to owning the stock outright. If shares decline, the institution appears willing to accumulate MU near $920. After accounting for the roughly $7 net credit received, the effective entry cost becomes:

920−7=913

That suggests large money is comfortable owning Micron around the $913 level for the longer term.

Click here to view MU's options.

Meanwhile, another even more aggressive trade also caught attention: an institution swept MU August 21, 2026 $950 Calls worth roughly $22.59 million in premium, marked as an Opening position. At the time, MU stock was trading near $914, yet the buyer was still willing to pay approximately $154 in premium for the $950 strike calls.

The true breakeven point sits near:

950+154.7≈1105

That means the buyer is effectively betting MU could rally above $1,100 over the next several months.

Since it is already close to June, these August calls are not traditional long-dated LEAPS. Instead, they appear more like a medium-term bullish positioning ahead of what investors expect could be another acceleration phase in the AI trade following Micron's upcoming earnings report.

Compared with simply trading short-term earnings volatility, this type of medium-dated, high-delta call positioning often signals stronger conviction in continued trend momentum.

These trades also reflect the market's broader re-rating of HBM and AI memory demand. As AI training and inference workloads continue exploding, HBM is increasingly viewed as one of the most critical bottlenecks in the AI supply chain. Micron has already indicated that its HBM capacity is essentially sold out through 2026, while major hyperscalers continue locking in long-term supply agreements. Investors are increasingly viewing AI-era memory not as a traditional commodity business, but as a core layer of AI infrastructure.

Wall Street is rapidly adjusting its expectations as well. UBS recently raised its Micron price target aggressively, arguing that AI-driven DRAM and HBM supply tightness could persist into 2027 and 2028. Some investors have even started referring to Micron as a potential “next Nvidia” within the AI infrastructure trade.

Micron's earnings report, expected around June 24, could become the next major catalyst. Investors are no longer simply focused on whether the company can beat consensus estimates. Instead, the market is watching whether HBM ASPs continue rising, whether AI data-center demand remains exceptionally strong, and whether Micron further raises CapEx and long-term guidance.

Judging by the recent options flow, institutional money still appears heavily positioned for one outcome:

The AI memory supercycle may still be far from over.

Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Opening new options positions close to or on their expiration date comes with substantial risk of losses for reasons that include potential volatility of the underlying security and limited time to expiration. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period. Certain complex option strategies carry additional risk, including potential losses that may exceed the original investment amount. If applicable, supporting documentation for any claims will be furnished upon request.

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