Micron Technology's High-Bandwidth Memory Fully Booked Through 2026, Stock Up 260%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: NASDAQ.COM
- Strong Market Demand: Micron Technology's high-bandwidth memory is fully booked through 2026, indicating robust demand for AI processing capabilities, which is expected to further enhance the company's market share and profitability in the coming years.
- Outstanding Financial Performance: In Q1 FY2026, Micron reported a 57% year-over-year revenue increase to $13.6 billion, with gross margins anticipated to rise from 57% to 68% in Q2, potentially leading to higher returns for shareholders.
- Growth Potential in Market: The high-bandwidth memory market is projected to grow at a 40% compound annual growth rate through 2028, with Micron expecting its total addressable market to reach $100 billion, potentially achieving this milestone two years earlier than initially anticipated.
- Pricing Leverage Advantage: With supply constraints, Micron can capitalize on unprecedented demand to raise prices, enhancing profitability; despite market risks, the company plans to expand new plants to fulfill customer orders, demonstrating confidence in future growth.
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: 389.090
Low
235.00
Averages
336.12
High
500.00
Current: 389.090
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.
