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Micron Technology's CEO dropped game-changing news about his outlook on the demand for memory solutions in the upcoming years. To address global shortages, MU has recently announced massive capacity expansions, with $200B committed in the U.S., $24B in Singapore, and a $1.8B DRAM fab deal in Taiwan. The hyperscaler CAPEX projections support durable industry tightness and sustained memory shortages through at least 2027.
The memory market has shifted structurally, with AI-driven capacity reallocation extending supply shortages into 2027–2028 and reshaping pricing dynamics. High-bandwidth memory demand is compounding over 25% annually, growing toward a ~$60 billion market and turning memory into the AI bottleneck. Micron delivered a 6.5x return in under a year, driven by strong HBM margins, multi-year contracts, and accelerating earnings power.
Micron Technology (MU) delivered a 500% total return since April 2025, validating the bullish thesis in my previous articles on the company. Its massive opportunity in High Bandwidth Memory (HBM) and a favorable memory industry upcycle were key drivers. Management forecasts second-quarter FY 2026 revenue growth of 132%, which would be the highest organic growth in its history.
NVIDIA stands out in 2026 as a top profitable semiconductor pick, boasting a 53% net income ratio as investors favor companies with strong bottom lines.
Seagate says prices could go higher for its storage products as supply remains tight due to AI.
Recently, Zacks.com users have been paying close attention to Micron (MU). This makes it worthwhile to examine what the stock has in store.
MU's shares jumped 5.4% as it unveiled a $24B plan to build an advanced memory chip fab in Singapore, betting on AI and data-center demand.
MU shares surged on booming HBM demand, soaring revenue and earnings, and an attractive valuation that suggests its growth story isn't over yet.
Micron Technology, Inc. has continued to surge, closing in on $400 per share. The current upcycle appears to have more legs as new fabs are still a long way off. While I expect more upside ahead for MU stock, cyclicality is alive and well.
Micron edges out Western Digital as AI-driven memory demand, tight supply and a cheaper valuation make MU the more attractive pick now.