Micron Technology has sold out its entire high-bandwidth memory (HBM) and DRAM chip production for calendar year 2026 before the end of 2025, underscoring the acute supply–demand imbalance in the AI market. In its first quarter of fiscal 2026 (ended November 27, 2025), the company reported revenue of $13.64 billion, a 56.7% year-over-year increase, driven largely by HBM stack shipments and strong pricing on next-generation DRAM wafers. With only three global suppliers of HBM and DRAM—Micron, Samsung and SK Hynix—the company has secured long-term contracts with multiple hyperscale datacenter operators, effectively locking in its capacity through 2026 and establishing itself as a cornerstone of AI infrastructure.

To address the long-term memory shortage and capitalize on AI-related demand, Micron has committed over $200 billion to expand U.S. manufacturing capacity. Investments include the expansion of its existing Virginia fab, construction of two new fabrication facilities in Idaho and New York, and a letter of intent to acquire a Taiwanese semiconductor site for $1.8 billion. These projects are slated to begin capacity ramp-up in late 2026, with targeted full-volume production by 2028, positioning Micron to increase its DRAM and HBM output by at least 25% year over year once all facilities are operational.

Despite a near-tripling of its shares over the past year, the company trades at approximately 5.5 times forward sales and 11 times forward earnings, a valuation that remains below its long-term peer average. HSBC recently raised its operating profit forecast for fiscal Q2 to $12 billion—an 88% sequential gain on projected sales of $20 billion, up 47% quarter-over-quarter—and lifted its price target to $500. For fiscal 2026, the bank now models operating profit of $51 billion, up 368% year-over-year, on sales of $84 billion, up 124%. Forward guidance also calls for earnings per share between 8.22 and 8.62 in Q2, implying continued margin expansion in the memory cycle.