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Micron’s Rally Extends on Record Outlook as HBM Capacity Is Booked Into 2027

Long-term contracts with tight supply signal a shift in the memory cycle.

Overview

  • Micron shares rose about 125% in six months, yet Friday reports show a Strong Buy call with a $543 average target and a 7–8x forward P/E.
  • The company posted record Q2 FY2026 results with $23.9 billion in revenue and guided Q3 to $33.5 billion with gross margin near 81%.
  • Micron’s high‑bandwidth memory supply is sold out through 2026 with 2027 allocations set, and the company signed its first five‑year customer contract.
  • Evercore initiated SanDisk at Overweight with a $1,200 target and a $2,600 bull case, citing AI storage demand and multi‑year supply commitments.
  • Analysts still flag risks such as efficiency gains like Google’s TurboQuant that could cut memory needs, plus heavy industry capex and China exposure that could pressure prices by 2027–2028.