Micron Technology Projects HBM Revenue to Reach $100 Billion by 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 31 2025
0mins
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.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 971.000
Low
235.00
Averages
336.12
High
500.00
Current: 971.000
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 Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
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.
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- Earnings Expectations: Analysts project Micron's third-quarter revenue to reach $33.7 billion with earnings per share of $19.21, as management highlights robust AI-driven demand, suggesting these targets are achievable.
- Market Demand: Unprecedented demand for high-bandwidth memory (HBM) and DRAM has turned Micron into a critical hardware provider in hyperscale data centers, driving record revenue and profit margin expansion.
- Investment Strategy: While market volatility may impact short-term performance, the long-term shift in memory chip demand is expected to outweigh the effects of any single earnings report, making Micron a buy for investors confident in the AI memory narrative.
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- Optimistic Price Predictions: Several Wall Street firms, including Bank of America and UBS, have significantly raised their price targets for Micron, with Bank of America increasing its target from $500 to $950 and UBS from $535 to $1,625, reflecting strong market confidence in its future performance.
- Strategic Customer Agreement: Micron has signed its first strategic customer agreement, ensuring long-term supply purchases over the next five years, which alleviates it from the traditional cyclical fluctuations of the semiconductor industry and enhances its market stability.
- AI Demand Driving Growth: DRAM and NAND flash prices are projected to soar by 125% and 234%, respectively, primarily driven by the construction of AI data centers, prompting Micron to undertake a $200 billion expansion in Idaho and New York to meet the surging chip demand.
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- Surging Market Demand: The memory chip market is currently experiencing huge demand and supply shortages, leading to soaring prices, with SanDisk and Micron Technology both benefiting, as analysts project a 330% revenue growth for SanDisk and 250% to 260% for Micron over the next two quarters.
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- Valuation Analysis: Micron's dependence on DRAM has led the market to withhold a full valuation premium, whereas SanDisk's valuation aligns more closely with other tech stocks, reflecting its faster growth projections and making it the superior investment choice.
- Long-Term Growth Potential: With data center expenditures expected to rise again in the next year and throughout the decade, SanDisk's stronger position before supply catches up to demand positions it as the better investment option currently.
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- Product Focus Differences: Micron is entirely focused on DRAM memory, which, despite its higher volatility, offers greater profitability in the current soaring price environment; conversely, Sandisk's focus on NAND memory results in less volatility while still playing a crucial role in data center demand.
- Valuation Challenges: Due to the cyclical nature of Micron's DRAM memory, the market has not assigned a full valuation premium to its stock, while Sandisk's valuation aligns more closely with other tech stocks, reflecting its faster growth expectations and making it more appealing to investors.
- Long-Term Growth Outlook: With data center expenditures expected to rise again in the coming years, Sandisk is viewed as a more stable investment choice, and although it did not make the Motley Fool's top stock recommendations, its growth potential remains noteworthy.
See More
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- Stock Surge: Micron's shares surged about 5% on Monday, surpassing the $1000 mark, reflecting optimistic market sentiment ahead of the upcoming earnings report on June 24.
- Strong Demand: Analysts noted after meetings with supply chain companies in South Korea and Taiwan that supply remains tight, pricing is strong, and customers are providing significantly greater visibility into long-term demand, indicating robust market confidence in Micron.
- Earnings Outlook: While analysts express no concerns regarding ongoing demand and pricing strength, they caution that current supply constraints may temper revenue upside in the near term, with gross margins expected to moderate from peak levels observed in the May quarter.
See More
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- Recent Returns: While the stock only increased by 14% in the first four years, it skyrocketed 858% in the last year, underscoring the importance of patient investing after years of underperformance.
- Market Positioning: As one of only three companies globally capable of producing high-bandwidth memory, Micron is well-positioned to meet AI-driven memory demands, despite increased stock volatility.
- Future Outlook: Micron's forward P/E ratio stands at just 9, significantly lower than competitors like NVIDIA at 22 and AMD at 49, indicating potential for growth, although cyclical risks in the memory industry remain a concern.
See More
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- Stock Performance: Micron Technology's stock has surged over 231% this year, making it the second-best performer in the Nasdaq-100 index and pushing its market capitalization above $1 trillion, reflecting its strong market position.
- Earnings Expectations: Analysts project Micron's third-quarter revenue to reach $33.7 billion with earnings per share of $19.21, as management highlights robust AI-driven demand, suggesting these targets are achievable.
- Market Demand: Unprecedented demand for high-bandwidth memory (HBM) and DRAM has turned Micron into a critical hardware provider in hyperscale data centers, driving record revenue and profit margin expansion.
- Investment Strategy: While market volatility may impact short-term performance, the long-term shift in memory chip demand is expected to outweigh the effects of any single earnings report, making Micron a buy for investors confident in the AI memory narrative.
See More
Micron Technology Surpasses $1 Trillion Market Cap
- Milestone Market Cap: Micron Technology's market capitalization has doubled over the past 48 days to approximately $1.04 trillion, making it one of only 14 companies globally valued at over $1 trillion, highlighting its robust growth potential in the semiconductor industry.
- Optimistic Price Predictions: Several Wall Street firms, including Bank of America and UBS, have significantly raised their price targets for Micron, with Bank of America increasing its target from $500 to $950 and UBS from $535 to $1,625, reflecting strong market confidence in its future performance.
- Strategic Customer Agreement: Micron has signed its first strategic customer agreement, ensuring long-term supply purchases over the next five years, which alleviates it from the traditional cyclical fluctuations of the semiconductor industry and enhances its market stability.
- AI Demand Driving Growth: DRAM and NAND flash prices are projected to soar by 125% and 234%, respectively, primarily driven by the construction of AI data centers, prompting Micron to undertake a $200 billion expansion in Idaho and New York to meet the surging chip demand.
See More
Memory Chip Market Opportunities and Investment Analysis
- Surging Market Demand: The memory chip market is currently experiencing huge demand and supply shortages, leading to soaring prices, with SanDisk and Micron Technology both benefiting, as analysts project a 330% revenue growth for SanDisk and 250% to 260% for Micron over the next two quarters.
- Product Focus Differences: Micron focuses on both DRAM and NAND memory, making it more leveraged to the current surge in DRAM prices despite its higher volatility, while SanDisk's focus on NAND memory results in lower volatility, appealing to investors seeking stability.
- Valuation Analysis: Micron's dependence on DRAM has led the market to withhold a full valuation premium, whereas SanDisk's valuation aligns more closely with other tech stocks, reflecting its faster growth projections and making it the superior investment choice.
- Long-Term Growth Potential: With data center expenditures expected to rise again in the next year and throughout the decade, SanDisk's stronger position before supply catches up to demand positions it as the better investment option currently.
See More
Memory Industry Competition Analysis: Sandisk vs Micron
- Surging Market Demand: The memory chip market is currently experiencing huge demand coupled with limited supply, leading to soaring prices that allow producers like Sandisk and Micron to profit significantly, with Sandisk projected to achieve 330% revenue growth over the next two quarters compared to Micron's 250% to 260% growth.
- Product Focus Differences: Micron is entirely focused on DRAM memory, which, despite its higher volatility, offers greater profitability in the current soaring price environment; conversely, Sandisk's focus on NAND memory results in less volatility while still playing a crucial role in data center demand.
- Valuation Challenges: Due to the cyclical nature of Micron's DRAM memory, the market has not assigned a full valuation premium to its stock, while Sandisk's valuation aligns more closely with other tech stocks, reflecting its faster growth expectations and making it more appealing to investors.
- Long-Term Growth Outlook: With data center expenditures expected to rise again in the coming years, Sandisk is viewed as a more stable investment choice, and although it did not make the Motley Fool's top stock recommendations, its growth potential remains noteworthy.
See More
Raymond James Raises Micron Price Target to $1100 Ahead of Earnings
- Price Target Increase: Raymond James raised Micron Technology's (MU) price target from $530 to $1100 while reiterating its Outperform rating, indicating strong confidence in the company's future performance.
- Stock Surge: Micron's shares surged about 5% on Monday, surpassing the $1000 mark, reflecting optimistic market sentiment ahead of the upcoming earnings report on June 24.
- Strong Demand: Analysts noted after meetings with supply chain companies in South Korea and Taiwan that supply remains tight, pricing is strong, and customers are providing significantly greater visibility into long-term demand, indicating robust market confidence in Micron.
- Earnings Outlook: While analysts express no concerns regarding ongoing demand and pricing strength, they caution that current supply constraints may temper revenue upside in the near term, with gross margins expected to moderate from peak levels observed in the May quarter.
See More
Micron Technology Stock Soars 1,030% Amid AI Demand
- Stock Performance: Micron Technology's stock has surged 1,030% over the past five years, meaning a $5,000 investment five years ago would now be worth $56,720, reflecting its strong performance amid rising AI memory demand.
- Recent Returns: While the stock only increased by 14% in the first four years, it skyrocketed 858% in the last year, underscoring the importance of patient investing after years of underperformance.
- Market Positioning: As one of only three companies globally capable of producing high-bandwidth memory, Micron is well-positioned to meet AI-driven memory demands, despite increased stock volatility.
- Future Outlook: Micron's forward P/E ratio stands at just 9, significantly lower than competitors like NVIDIA at 22 and AMD at 49, indicating potential for growth, although cyclical risks in the memory industry remain a concern.
See More
