Micron Technology has announced that its entire high-bandwidth memory (HBM) production for calendar year 2026 was fully contracted before the end of 2025, underscoring unprecedented demand from AI data-center customers. Industry reports indicate data-center spending will absorb roughly 70% of total memory output this year, while smartphone, PC and automotive manufacturers compete for the remaining supply. With only three global suppliers of advanced DRAM and HBM, Micron’s sold-out status reflects both the intensity of AI workloads and the company’s leading position in next-generation memory solutions.

To address long-term demand pressures, Micron has committed over $200 billion to expand U.S. manufacturing capacity across its Virginia campus and two new fabs in Idaho and New York, as well as a proposed $1.8 billion acquisition of a Taiwanese fabrication site. These investments are aimed at scaling production for sub-1-nanometer DRAM technologies and advanced HBM modules. Management forecasts that these facilities will come online between 2026 and 2028, supporting a projected 69% increase in industry-wide advanced chip capacity through 2028 as estimated by SEMI.

In its fiscal first quarter of 2026, Micron reported a 57% year-over-year revenue increase to $13.6 billion and a 167% rise in earnings per share, driven by strong memory pricing and robust AI-related orders. Consensus forecasts call for nearly $33 per-share in earnings for fiscal 2026 and further growth into fiscal 2027. Trading at approximately 11 times forward earnings—well below the semiconductor sector average—Micron’s multiple reflects both cyclical upside from tight memory supply and long-term AI infrastructure secular growth.