Micron Technology Goes All-In on High Bandwidth Memory Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: NASDAQ.COM
- Surging Market Demand: As hyperscale AI specialists begin constructing massive data centers, the memory market tightened in 2025, leading to a 37% price increase for DDR4 memory modules and a tripling of DDR5 prices over the past two years, indicating strong demand for high bandwidth memory (HBM) and driving revenue growth for Micron.
- Strategic Shift: Micron has ceased production of consumer-grade chips to focus on more profitable HBM products, with projections indicating that the HBM market will grow from $35 billion in 2025 to around $100 billion by 2028, achieving a compound annual growth rate of 40%, which will reshape the entire memory industry landscape.
- Improved Financial Performance: Micron's revenues have doubled over the past two years, with a net margin of 28%, indicating significant financial returns amid the AI boom, and its stock has surged 371% over the past year, outperforming the S&P 500 index.
- Increased Investor Confidence: Micron's stock has seen substantial recent gains, reflecting market confidence in its future growth potential; despite a current P/E ratio of 9.9, its PEG ratio stands at just 0.13, suggesting the stock may be undervalued and attracting more investor interest.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 435.790
Low
235.00
Averages
336.12
High
500.00
Current: 435.790
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). CNBU segment includes memory products and solutions sold into the data center, PC, graphics, and networking markets. MBU segment includes memory and storage products sold into the smartphone and other mobile-device markets. EBU segment includes memory and storage products and solutions sold into the intelligent edge through the automotive, industrial, and consumer embedded markets. SBU segment includes SSDs and component-level storage solutions sold into the data center, PC, and consumer markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Technology's Performance Boosted by AI Demand
- Significant Revenue Growth: Micron Technology reported $13.6 billion in revenue for the quarter ending November 27, 2025, marking a 57% year-over-year increase, reflecting strong market demand and support from enterprise customers.
- Dramatic Profit Increase: The company's operating profit nearly tripled from $2.2 billion to $6.1 billion, indicating that its bottom-line growth is outpacing revenue growth, which boosts investor confidence.
- Successful Strategic Shift: Micron's decision to exit the consumer memory products market and focus on the enterprise sector is expected to further enhance margins in response to robust demand projected to last until 2027.
- Attractive Valuation: Although the current P/E ratio stands at 38 times earnings, analysts project a forward P/E of only 13, significantly lower than the S&P 500's average of 22, highlighting its potential as a growth investment.
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