Overview
- Micron shares firmed after Monday’s bullish call from KeyBanc, as Samsung’s report of an eightfold profit jump reinforced a memory shortage that analysts expect to persist into mid‑2027.
- KeyBanc’s John Vinh kept a $600 target and projected DRAM and NAND price gains of 30% to 50% in Q2, pointing to new cloud contracts that add pricing floors and upfront capacity payments.
- Micron says its high‑bandwidth memory is fully allocated for 2026 through long‑term deals, reflecting AI data‑center builds that require HBM chips paired with GPUs to move data quickly.
- The company’s latest results were record‑setting, with fiscal Q2 revenue of $23.86 billion and guidance for Q3 around $33.5 billion with gross margin near 81%.
- Caution remains after an April 2 downgrade from Erste and a CapEx increase to about $25 billion for FY2026, as Micron adds capacity with Taiwan’s P5 site targeting first shipments in fiscal 2028 and works to qualify HBM4 for Nvidia’s Rubin platform.