Micron Technology Sells Out Entire 2026 Chip Inventory Amid AI Demand Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 24 2026
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Source: NASDAQ.COM
- Inventory Sold Out: Micron Technology has sold out its entire 2026 supply of high bandwidth memory (HBM) before the end of 2025, reflecting the robust demand for memory chips driven by AI computations, which is expected to boost the company's revenue to record highs in the short term.
- Investment Expansion: The company has committed over $200 billion to increase its U.S. manufacturing capacity in the coming years, including expanding its existing Virginia facility and opening two new fabrication plants in Idaho and New York, aimed at meeting the surging market demand.
- Reasonable Valuation: Despite a significant stock price increase in 2025, Micron's price-to-earnings ratio stands at only 11 times and price-to-sales at 5.5 times, indicating the company's long-term potential and reasonable investment value within the AI ecosystem.
- Market Monopoly: The global supply of DRAM and HBM memory chips is nearly monopolized by Micron, SK Hynix, and Samsung, with demand far exceeding supply, providing strong support for Micron Technology's future growth.
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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: 414.880
Low
235.00
Averages
336.12
High
500.00
Current: 414.880
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 High-Bandwidth Memory Chips Experience Rapid Growth
- Data Center Revenue Doubling: Micron Technology's data center revenue doubled to approximately $5.3 billion in the most recent quarter, reflecting strong demand in the AI sector and indicating potential for further overall performance growth.
- Significant Profitability Increase: In the first quarter of fiscal 2026, Micron's earnings soared to $4.60 per share, a 175% year-over-year increase, demonstrating enhanced pricing power in the high-bandwidth memory market and substantial profit growth.
- Expansive Market Outlook: Micron's CEO predicts that the data center high-bandwidth memory market will reach a value of over $100 billion by 2028, highlighting significant strategic opportunities for the company, especially as AI workloads gradually shift to personal devices.
- Production Capacity Expansion: Micron is ramping up production of its next-generation HBM4E chips, which are expected to improve capacity by 60% and energy efficiency by 20%, with the entire supply for 2026 already sold out, indicating strong market demand for its products.
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