Micron to Build Second Taiwan HBM Plant as Q2 EPS Seen at $8.77
Micron will expand its Taiwan operations by building a second DRAM plant on the acquired Powerchip P5 Tongluo site, targeting HBM production with work starting end of fiscal 2026. Analysts project Q2 EPS of $8.77 and revenue of $19.03 billion, fueling a 42% YTD share rally.
1. Micron Plans Second Taiwan Plant
Micron acquired Powerchip’s Tongluo P5 facility and will construct a second DRAM manufacturing plant of comparable scale to its existing site. The expansion focuses on high-bandwidth memory production for AI systems, with ground-breaking scheduled by the end of fiscal 2026 to meet rising data center demand.
2. Q2 FY2026 Earnings Forecast
For the fiscal second quarter, analysts estimate earnings per share of $8.77 and revenue of $19.03 billion, driven by higher DRAM and HBM pricing and robust AI-related memory demand. This outlook has contributed to a 42% rally in the company’s shares year to date.
3. Analyst Price Target Revisions
Brokerages have lifted price targets ahead of the earnings release, with Wedbush increasing its target to $500 and Wells Fargo to $470, both citing stronger pricing power and sustained AI-driven demand. The average one-year target stands near $408, contrasting with a GF Value of about $373.