Micron’s Sold-Out HBM Supply Fuels 900% Rally to $1,040 and 68% Margins
MU•Micron has secured sold-out high-bandwidth memory supply for AI accelerators through 2026 under multi-year contracts, underpinning its surge of 900% to near $1,040 and supporting projected 68% gross margins and earnings growth. The stock closed up 2.8% on June 2 as investors eye the critical June 24 earnings report.
1. Sold-Out HBM Supply Through 2026
Micron has locked in its high-bandwidth memory capacity for AI accelerators under multi-year agreements lasting through 2026, securing full production utilization and revenue visibility for its fastest-growing segment.
2. Strong Margins and Valuation Concerns
The company forecasts gross margins of 68% and rapid earnings growth, but its share price trades well above the $717 analyst consensus target, prompting debate over whether this reflects structural repositioning or momentum-driven overvaluation.
3. Recent Price Surge and Upcoming Earnings
Over the past year, Micron shares have rallied about 900% to near $1,040 and climbed 2.8% on June 2; the June 24 earnings release will be pivotal in assessing whether the $1,000 threshold can be maintained.
