Micron reported that its high-bandwidth memory (HBM) allocation for calendar 2026 sold out before the year began, reflecting unprecedented demand from AI infrastructure customers. To capitalize on this surge, the company has decided to retire its Crucial consumer SSD and DRAM brand and reallocate resources toward scaling AI-grade HBM production. Management projects HBM revenue to account for more than 25% of total sales by the end of 2026, up from under 10% in fiscal 2024.

After a 45% share gain in the prior month, Micron shares declined over 3.5% in the latest session as investors realized gains. Unusual options volumes pointed to hedged positions being unwound, while some market participants voiced concern over Micron’s plan to boost capital spending by over $9 billion over the next two years to expand HBM and DRAM capacity. Analysts note that even with strong end-market demand, such aggressive investment introduces execution and returns risk.

In the most recent quarter, Convergence Investment Partners initiated a position of 1,502 shares valued at approximately $251,000, joining a group of institutional buyers that raised ownership by over 80% collectively. At the same time, two senior executives sold a total of 17,000 shares for net proceeds exceeding $4.8 million, trimming their combined stake by roughly 7%. On the sell-side, five firms have lifted their price targets—Mizuho to $480, Bank of America to $400, KeyCorp to $450, HSBC to strong-buy status, and Stifel to $360—implying consensus upside of nearly 20% from current levels.