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Micron Rallies Ahead of Wednesday Earnings as It Plans Second Taiwan Memory Fab

Wall Street wants clarity on how long AI-driven memory shortages will support elevated prices before fresh capacity comes online from 2027.

Overview

  • Micron reports fiscal Q2 2026 results on March 18, with consensus revenue around $19.1–$19.3 billion and projected EPS of roughly $8.60–$8.75, reflecting triple‑digit year‑over‑year growth.
  • AI data center demand is straining supply, with Micron’s HBM fully allocated through calendar 2026 and the company able to meet only about 50%–66% of some key customers’ needs.
  • Options pricing implies roughly a 9%–10.6% move in either direction after the report, while shares are up about 42% year to date heading into the print.
  • Micron said it will build a second chip plant in Taiwan at a newly acquired Powerchip site to produce advanced DRAM including HBM, alongside retrofitting the Tongluo P5 facility for DRAM/HBM with first shipments targeted for fiscal 2028.
  • Analysts have lifted targets—Wedbush to $500 and Wells Fargo to $470—with a Strong Buy consensus, as several see tight memory supply persisting into 2027 and supporting pricing.