Micron shares jump 5.5% on Q4 HBM4 ramp confirmation; $600 target set
Micron shares surged 5.5% after CFO Sanjay Mehrotra confirmed HBM4 memory chips will enter mass production in Q4 2026, resolving prior capacity uncertainties. Separately, TD Cowen raised its price target to $600 per share, implying 55% upside based on robust AI-driven demand.
1. CFO Clarifies HBM4 Mass Production Timeline
During the Q1 call, CFO Sanjay Mehrotra stated that Micron will begin mass production of its next-generation HBM4 chips in the fourth quarter of 2026, addressing previous investor concerns over supply timing and capacity constraints.
2. Stock Reaction to Production Clarity
Following the timeline confirmation, shares rose 5.5% as investors gained confidence in Micron’s ability to meet growing high-bandwidth memory demand for AI and data center applications.
3. TD Cowen Boosts Price Target to $600
In a separate development, TD Cowen analysts increased their Micron target to $600, citing strong secular trends in AI workloads and elevated average selling prices for HBM products, which underpins a projected 55% upside.
4. Demand Outlook and Valuation Implications
With HBM4 entering production, Micron is positioned to capture higher-margin sales in the AI market, potentially driving earnings growth and supporting a premium EV/EBITDA multiple over the next 12–18 months.