Micron’s 2026 HBM Capacity Sells Out Early, Crucial Brand Shuttered After 45% Rally
Micron’s 2026 HBM production sold out early and it is shuttering Crucial to focus on AI-grade chips, fueling a 45% rally. In Q4 it delivered $4.78 EPS on $13.64B revenue and set Q2 2026 EPS guidance of $8.22–$8.62, spurring analyst price target raises up to $480.
1. Micron Sells Out 2026 HBM Allocation, Exits Crucial Brand
Micron Technology announced that its high-bandwidth memory (HBM) production for calendar 2026 reached full subscription before the start of the year, marking the fastest sell-out in the company’s history for this product line. To concentrate resources on supplying AI-grade memory modules, Micron will phase out its Crucial consumer brand by mid-2026, reallocating an estimated 20 percent of its Boise, Idaho fabrication capacity to HBM wafer starts. Management estimates that dedicating fabs to AI memory will boost segment gross margin by 250 basis points over the next two fiscal years.
2. Q4 Results Exceed Street Estimates, Raises Mid-Cycle Guidance
In the quarter ended December 3, Micron reported revenue of 13.64 billion, surpassing consensus forecasts by 8 percent, and delivered adjusted earnings per share of 4.78, beating estimates by 27 percent. Net margin widened to 28.15 percent, compared with 18.9 percent in the prior year, while return on equity climbed to 22.7 percent. The company provided guidance for fiscal Q2 2026 EPS in a range of 8.22 to 8.62, implying year-over-year growth of more than 80 percent at the midpoint, as demand from cloud service providers for high-capacity DRAM and NAND accelerates.
3. Post-Rally Pullback Reflects Profit-Taking, Options Flows, Capex Concerns
After more than doubling from its November low, Micron shares fell over 3.5 percent on the first trading day of February in what analysts describe as classic profit-taking. Unusually heavy put-call option volume signaled traders trimming exposure, while several investors flagged concerns about the company’s planned capital expenditures, projected at 11 billion for fiscal 2026, up 30 percent from the prior year’s outlay.
4. Institutional and Insider Transactions Signal Mixed Sentiment
Convergence Investment Partners entered a new position of 1,502 shares during Q3, representing an outlay of approximately 251,000, according to SEC filings. In parallel, executive Vice President April S. Arnzen sold 15,000 shares at an average price of 277.09 for total proceeds of about 4.16 million, and Chief Accounting Officer Scott R. Allen disposed of 2,000 shares at an average of 337.50, generating 675,000. Over the past three months, insiders sold 61,123 shares while purchasing 23,200, leaving company insiders with 0.24 percent of total equity outstanding.