Micron Technology Projects 132% Q2 Revenue Growth, Eyes $100B HBM Market
Micron Technology’s data center NAND segment generated over $1 billion in fiscal Q1 sales and its HBM volume and pricing agreements for 2026 are fully secured. Q2 revenue guidance implies 132% year-over-year growth to $18.7 billion with a 68% gross margin, and shares have rallied roughly 80% in three months.
1. Data Center NAND and HBM Momentum
Micron’s data center NAND business surpassed $1 billion in quarterly revenues in fiscal Q1, driven by strong hyperscaler demand and tightening supply. The company has secured volume and pricing agreements for its high-bandwidth memory (HBM) franchise in 2026, positioning it to capitalize on a segment projected to reach a $100 billion total addressable market by 2028.
2. Q2 Fiscal 2026 Outlook
Analyst consensus for fiscal Q2 calls for $18.7 billion in revenues, representing a 132% year-over-year increase, and a non-GAAP gross margin of approximately 68%. Growth is underpinned by ramping G9 NAND across enterprise and client SSDs, PCIe Gen6 qualification at hyperscalers, and robust DRAM demand for AI compute platforms.
3. Share Rally and Valuation
Micron shares have climbed about 79.8% over the past three months and 342% over the last 12 months, reflecting investor enthusiasm around AI infrastructure spend. The stock trades at 5.49x forward revenue versus Sandisk’s 4.42x, suggesting a relative premium driven by its diversified DRAM, NAND and HBM exposure.