Micron Rallies on AI Buildout With HBM Supply Sold Out Through 2026
Sold-out HBM supply signals tight memory markets tied to AI buildouts.
Overview
- Bank of America, in a Tuesday report, projected global AI capital spending near $1.4 trillion by 2030 and highlighted Micron’s position in memory.
- Micron posted blockbuster fiscal Q2 2026 results with revenue of $23.86 billion, up 196% year over year, and non-GAAP EPS of $12.20, up 682%.
- Contracts for HBM3E and HBM4, the stacked memory used with AI GPUs, are fully booked through the 2026 calendar year.
- To add capacity, the company plans to invest more than $25 billion in fiscal 2026 and is expanding HBM advanced packaging operations in Singapore.
- Despite a 122.9% six-month share gain, Micron still trades at a forward P/E of about 5–6, and some analysts warn results could reflect peak margins.