Micron Sells Out 2025 HBM Supply: Can It Meet Soaring Demand in 2026?

Core Insights - Micron Technology, Inc. has confirmed that its entire High Bandwidth Memory (HBM) supply for calendar year 2025 is sold out, indicating strong demand for its advanced memory chips essential for AI-focused computing platforms [1] - HBM is projected to be a key growth driver for Micron, with demand expected to increase from approximately $18 billion in 2024 to $35 billion in 2025, continuing to grow in 2026 [2] - The company is expanding its manufacturing capacity and plans to bring more HBM capacity online in Singapore by 2027 to meet rising demand [4] HBM Market Dynamics - Micron's HBM revenues have ramped up sharply, and the company anticipates its HBM market share to match its DRAM share in the second half of 2025, earlier than previously planned [3] - Volume shipments of Micron's 12-high HBM3E are underway, and HBM4 sampling has begun for 2026 platforms [3] - The challenge for Micron will be to scale fast enough to meet demand, as HBM demand is outpacing general DRAM growth [4] Competitive Landscape - While there are no direct U.S. stock exchange-listed competitors for Micron in the memory chip space, Intel Corporation and Broadcom Inc. play significant roles in the HBM supply chain and AI hardware ecosystem [5] - Intel is developing AI accelerators that require high-performance memory like HBM, which could impact Micron's position if there are shifts in memory partnerships [6] - Broadcom designs custom application-specific integrated circuits used in AI infrastructure that often include integrated HBM, influencing how HBM suppliers like Micron allocate their future supply [7] Financial Performance and Valuation - Micron's shares have increased approximately 49.7% year to date, outperforming the Zacks Computer – Integrated Systems industry's gain of 28.1% [8] - The company has fully booked its 2025 HBM inventory and expects demand to continue increasing into 2026 [9] - Micron trades at a forward price-to-sales ratio of 3.2, which is lower than the industry's average of 3.92 [11] - The Zacks Consensus Estimate for Micron's fiscal 2025 and 2026 earnings implies a year-over-year increase of approximately 433.1% and 52.4%, respectively [12]