Micron Technology Inc. has had one of the top-performing stocks in the S&P500 this year due to artificial-intelligence demand, and some analysts see it running even higher, as major technology firms could look to secure a long-term supply of memory chips.

The company

MU is one of three major producers of dynamic random-access memory chips, which are used to temporarily store data on devices such as laptops and smartphones. In Citi Research’s view, “DRAM will be the next chip to get long-term contracts with the AI food chain given its importance and undersupply.” That means Micron could be on its way to a chip deal similar to the ones OpenAI has struck with Nvidia Corp. NVDA, Advanced Micro Devices Inc. AMD and Broadcom Inc. AVGO in recent weeks, the analysts said in a Thursday note. South Korea’s SK Hynix Inc. KR:000660 and Samsung Electronics Co. KR:005930 are market leaders in memory.