Micron Logs Early HBM4 Shipments, Rallies 9.9% as Memory Prices Surge 40%-50%
Micron announced high-volume production and customer shipments of its next-generation HBM4 chips a quarter ahead of schedule, driving a 9.94% intraday surge. Memory contract prices jumped 40%–50% last quarter with forecasts of a doubling this quarter, prompting analysts to raise Micron’s price target and note its low forward P/E ratio.
1. HBM4 Production Accelerated
Micron began high-volume production and customer shipments of its next-generation HBM4 memory chips a quarter ahead of schedule, addressing earlier concerns about production delays and triggering a near 10% share price increase in intraday trading.
2. Memory Price Trend and Outlook
Contract prices for DRAM and HBM modules climbed by 40%–50% in the last quarter, with industry forecasts suggesting prices could double in the current quarter, bolstering Micron’s revenue outlook across its memory product lines.
3. Analyst Reactions and Valuation
Following these developments, several analysts lifted their price targets on Micron, citing the accelerated HBM4 ramp and robust pricing environment, and flagged its low forward P/E ratio—near mid-single digits—as providing valuation support.