A flurry of multi-million dollar bets on Micron Technology (MU) in the options market on May 22 preceded a public endorsement from former President Donald Trump, raising questions about the timing of the trades. The event highlights a recurring pattern of stock praise from the political figure while also drawing attention to the powerful artificial intelligence tailwinds that have propelled Micron’s 150% rally this year.
"Big company Micron, boy, Micron is great," Trump said at a large rally in Saffern, New York.
Just hours before Trump took the stage, traders noted at least nine large blocks of deep out-of-the-money call options were purchased for Micron. According to market flow data, the trades, with premiums totaling over $7.3 million, were aggressively bought at or above the ask price, signaling a strong directional bet on the stock rising. The stock, which traded near $751, has climbed approximately 680% over the past year.
This incident adds to a growing list of similar occurrences, where Trump’s public statements have coincided with his financial interests. Financial disclosures from the first quarter of 2026 show Trump purchased between $217,000 and $530,000 of Micron stock between March 2 and March 25. On March 26, he told Fox News, "I just met with the head of Micron, it's one of the hottest companies." This "buy-then-praise" sequence has been observed with other companies, including Dell and Thermo Fisher, prompting bipartisan calls for legislation to ban stock trading by presidents and members of Congress.
Anatomy of the Trade: A Timeline of Suspicion
The options activity on May 22 was highly concentrated and unusually aggressive. Market flow data shows seven of the nine large call purchases occurred in a 34-minute window between 1:19 p.m. and 1:53 p.m.
The bets included extremely bullish strike prices, such as a $1.41 million premium paid for calls with a $1,400 strike price expiring in January 2027, requiring the stock to rally nearly 90% in under eight months to be profitable. At 1:19:09 p.m. alone, four separate bullish transactions were executed simultaneously, accounting for over $7.3 million in premium. The timing, just before Trump's public praise, has led market participants to question whether the traders had advance knowledge of his remarks.
Beyond the Endorsement: AI Fundamentals and Policy Tailwinds
While the political endorsement created headlines, Micron's fundamental picture has been the primary driver of its 2026 stock performance. As the only U.S.-based manufacturer of advanced DRAM and high-bandwidth memory (HBM), Micron is a critical supplier for the booming AI infrastructure market. The company’s entire 2026 HBM capacity is sold out under long-term contracts to hyperscale data center builders like Microsoft and Alphabet.
This intense demand has given Micron significant pricing power in a market historically known for its cyclicality. According to research firm TrendForce, prices for DRAM and NAND flash memory have surged between 58% and 75% in recent months. This structural shift is reinforced by U.S. policy, with Micron receiving over $6 billion in CHIPS Act subsidies to bolster domestic production. The company's strategic position offers insulation from Asia-centric supply chain risks, an advantage Wall Street may be undervaluing as geopolitical friction persists.
This article is for informational purposes only and does not constitute investment advice.
