Micron’s Q4 Revenue Jumps 56.7% to $13.64B, Sells Out 2026 HBM Capacity
Micron sold out its 2026 high-bandwidth memory (HBM) production ahead of schedule and is discontinuing its Crucial consumer brand to prioritize AI-grade chips. The company beat Q4 revenue estimates with $13.64 billion (+56.7% YoY) and $4.78 EPS, guiding Q2 EPS to $8.22–8.62 and earning multiple analyst price-target raises.
1. High-Bandwidth Memory Production Fully Booked for 2026
Micron Technology reported that its high-bandwidth memory (HBM) production for calendar 2026 sold out before the start of the year, marking the first time in company history that HBM capacity has been fully pre-booked. The backlog represents over $4.5 billion in revenue, based on internal cost and pricing assumptions, and underscores hyperscaler demand for AI-grade DRAM solutions. Management noted that HBM unit shipments will grow by more than 150% year-over-year in fiscal 2026, driven by new design wins at leading cloud providers and accelerated acceleration hardware rollouts in data centers.
2. Strategic Shift Away from Consumer SSDs
In a move to focus resources on AI-optimized products, Micron is winding down its Crucial consumer SSD and DRAM business by the end of its fiscal 2026 third quarter. The company will reallocate approximately 800 engineering and manufacturing staff to its Boise and Taiwan campuses to expand HBM and GDDR capacity. This strategic pivot is expected to free up $300 million in annual operating expenses and improve gross margin by 250 basis points over the next 12 months, according to CFO guidance.
3. Post-Rally Pullback Reflects Profit-Taking and Capex Concerns
After more than doubling from its November trough, Micron shares declined 3.5% in a single session as investors booked gains following a 45% rally in the prior month. Trading volumes were 20% above the 30-day average, and options open interest spiked by 30% in call positions with expirations in March. Some market participants cited apprehension about Micron’s planned $15 billion capital expenditure program for 2026–2028, which includes two new fabrication expansions in Japan and Singapore slated to come online in late 2027.
4. Analyst Upgrades and Bullish Consensus
Over the past two weeks, five major Wall Street firms have raised their view on Micron, lifting target operating margins by 200–300 basis points and forecasting fiscal 2026 adjusted earnings per share growth of 300%. Institutional ownership stands at 80.8%, with Convergence Investment Partners adding a new 1,502-share stake valued at $251,000 in its latest 13F filing. MarketBeat aggregate data shows 30 buy ratings and a consensus target EPS of $33.31 for the fiscal year ending in August 2026, reflecting an expected jump from $8.29 in the prior year.