Micron Technology announced that its 2026 high-bandwidth memory (HBM) production capacity was sold out before the calendar year began, underscoring surging demand for AI-grade memory modules. To sharpen its focus on this higher-margin segment, the company will discontinue its Crucial consumer SSD and DRAM product lines by mid-year. Management projects that HBM will represent over 25% of total bit shipments by the end of 2026, compared with roughly 10% in 2023, and expects gross margins on AI-centric products to exceed 45%, up from 32% in the fourth quarter of fiscal 2025.

Following a more than 100% run-up from November lows, Micron shares declined over 3.5% in a single session as investors locked in gains. Unusual options volume—particularly heavy put purchasing—suggested some traders are hedging against short-term volatility. Meanwhile, concerns have emerged about the company’s planned $40 billion capital-spending commitment over the next two years. Although management maintains that the capex is essential to meet long-term AI demand, skeptics warn that any slowdown in hyperscaler orders could pressure returns on those investments.

In the third quarter, Convergence Investment Partners LLC initiated a stake of 1,502 shares valued at approximately $251,000, while Cullen Frost Bankers increased its holdings by 79.3%. Barnes Dennig and First Command Advisory Services each built new positions worth roughly $27,000. On the insider front, executives sold a combined 61,123 shares for proceeds of $19.5 million and acquired 23,200 shares at a cost of $7.8 million over the past three months. Institutional ownership now exceeds 80.8% of shares outstanding, while insiders hold just 0.24%.

Micron’s fourth-quarter revenue surged 56.7% year-over-year to $13.64 billion, with adjusted EPS of $4.78 topping consensus by $1.01. In response, Mizuho lifted its price target from 390 to 480 and reiterated an outperform rating, Bank of America raised its target from 300 to 400 with a buy recommendation, and KeyCorp bumped its objective from 325 to 450 and maintained an overweight stance. Overall, five firms now rate the stock as strong buy, thirty as buy and three as hold, with a consensus target of 349.76.