Micron Technology Projects HBM Revenue to Reach $100 Billion by 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Massive Market Potential: Micron Technology estimates that the high-bandwidth memory (HBM) market revenue will surge from $35 billion in 2025 to $100 billion by 2028, indicating robust demand for AI infrastructure and further solidifying its leadership in the global memory market.
- Significant Performance Growth: In Q1 of fiscal 2026, Micron's revenue soared 57% year-over-year to $13.6 billion, with non-GAAP earnings nearly tripling to $4.78 per share, reflecting strong performance and profitability in the AI accelerator market.
- Capacity Sold Out: Micron's management has confirmed that agreements on price and volume for its entire 2026 HBM supply are completed, indicating that its production capacity is sold out, which, combined with high demand and rising prices, is expected to drive future earnings growth.
- Investment Opportunity Emerges: Analysts forecast a staggering 288% increase in Micron's earnings to $32.14 per share in 2026, with the stock currently trading at less than 10 times forward earnings, suggesting a favorable buying opportunity for investors looking to capitalize on the AI chip trend.
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 228.21 USD with a low forecast of 170.00 USD and a high forecast of 325.00 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.
29 Analyst Rating
26 Buy
3 Hold
0 Sell
Strong Buy
Current: 294.370
Low
170.00
Averages
228.21
High
325.00
Current: 294.370
Low
170.00
Averages
228.21
High
325.00
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.
