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Micron Sells Out 2026 HBM, Posts Record Quarter

Multi‑year take‑or‑pay contracts have locked large near‑term revenue for Micron, forcing device makers to raise prices until new fab capacity comes online.

Overview

  • Micron reported a record fiscal Q3 on June 25 with about $41.5 billion in revenue, $25.11 in non‑GAAP EPS, and gross margins near 85 percent.
  • The company said its entire 2026 supply of high‑bandwidth memory (HBM) is sold out under long‑term Strategic Customer Agreements that include roughly $22 billion in customer commitments.
  • Management guided fiscal Q4 revenue to about $50 billion and raised capital spending plans to expand HBM capacity over several years to address AI data‑center demand.
  • The HBM squeeze is shifting profits to memory suppliers while buyers such as Apple are raising product prices to cover higher component costs and hyperscalers face larger capex bills.
  • Industry observers warn that new fabs and technology ramps will take years to relieve the shortage, so elevated prices and supplier margins are likely to persist through the middle of the decade.