Micron Technology has secured commitments for its entire high-bandwidth memory output through calendar 2026, according to its most recent guidance. This backlog reflects unprecedented demand from leading AI data-center operators and advanced computing customers. The company has negotiated multiyear contracts with top GPU and AI-chip developers, ensuring full utilization of its expanded fabrication capacity and providing strong revenue visibility for the next 18 months.

In the first quarter of fiscal 2026, Micron reported revenue of $13.6 billion, up 57% year-over-year, driven primarily by surging sales of HBM and enterprise DRAM products. Gross margin for the quarter reached 57%, benefitting from higher average selling prices and operational efficiencies in new Virginia and Idaho facilities. Management projects further expansion to 68% gross margin in the second quarter, reflecting ongoing pricing power and favorable product mix.

The global market for high-bandwidth memory is forecast to grow at a 40% compound annual rate through 2028, with total addressable value exceeding $100 billion. Micron’s production remains constrained relative to skyrocketing AI-related consumption, enabling the company to raise prices by double-digit percentages in recent contract renewals. This persistent shortfall underpins a robust pricing environment and supports sustained free cash flow generation.

Over the past two years, Micron has returned $2.7 billion to shareholders through stock repurchases and dividends, while earmarking $20 billion in capital expenditures for new U.S. manufacturing sites. Despite a more than 260% share-price appreciation over the past twelve months, the company trades at a forward price-to-earnings multiple of approximately 12x—well below the average for leading technology peers—suggesting room for further upside if growth targets are met.