Micron Sells Out 2025 HBM Supply: Can It Meet Soaring Demand in 2026?
Micron Technology, Inc. MU confirmed during its third-quarter fiscal 2025 earnings call that its entire High Bandwidth Memory ('HBM') supply for calendar year 2025 is sold out. This indicates strong demand for Micron Technology's advanced memory chips, which are essential for artificial intelligence (AI)-focused computing platforms. The company also said that it is already working with customers to prepare for HBM demand in 2026.
HBM is becoming a key growth driver for Micron Technology. MU expects HBM demand to jump from around $18 billion in 2024 to $35 billion in 2025, with continued growth in 2026. Micron Technology believes that its next-gen HBM4 products, offering over 2 terabytes per second bandwidth and 20% lower power usage, will be crucial in meeting this rising demand.
In the third quarter, Micron Technology's HBM revenues ramped up sharply. The company now expects its HBM market share to match its DRAM share in the second half of 2025, earlier than previously planned. Volume shipments of its 12-high HBM3E are underway, and HBM4 sampling has begun for 2026 platforms.
The challenge will be whether Micron Technology can scale fast enough. MU is expanding its backend manufacturing capacity and plans to bring more HBM capacity online in Singapore by 2027. Still, with HBM demand outpacing general DRAM growth, tight supply remains a risk.
At present, Micron Technology appears well-positioned in the AI memory race. However, maintaining momentum in 2026 will depend on continued execution in both technology and capacity expansion.
How Do Micron's Rivals Stack Up in the HBM Race?
Although there are no U.S. stock exchange-listed direct competitors for MU in the memory chip space, Intel Corporation INTC and Broadcom Inc. AVGO play key roles in the HBM supply chain and AI hardware ecosystem.
Intel is developing its own AI accelerators that rely on high-performance memory like HBM. Although Intel doesn't manufacture HBM chips, its Gaudi AI chips will require a robust HBM supply, and any shift in memory partnerships could impact Micron's position.
Broadcom, on the other hand, designs custom application-specific integrated circuits used in AI infrastructure that often include integrated HBM. As demand for Broadcom's AI chips grows, it could influence how HBM suppliers like Micron allocate their future supply.
Micron's Price Performance, Valuation and Estimates
Shares of Micron Technology have risen around 49.7% year to date compared with the Zacks Computer – Integrated Systems industry's gain of 28.1%.
From a valuation standpoint, MU trades at a forward price-to-sales ratio of 3.2, lower than the industry's average of 3.92.
The Zacks Consensus Estimate for Micron Technology's fiscal 2025 and 2026 earnings implies a year-over-year increase of approximately 433.1% and 52.4%, respectively. The estimates for fiscal 2025 have been revised upward in the past 60 days, while those for fiscal 2027 have moved south in the past seven days.
Micron Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
an hour ago
- CTV News
Republican senate tax bill would add $3.3 trillion to the U.S. debt load, CBO says
Senate Majority Leader John Thune, R-S.D., joined at left by Sen. John Barrasso, R-Wyo., the GOP whip, speaks to reporters following closed-door party meetings at the Capitol in Washington, Tuesday, June 17, 2025. (AP Photo/J. Scott Applewhite) WASHINGTON — The changes made to U.S. President Donald Trump's big tax bill in the Senate would pile trillions onto the nation's debt load while resulting in even steeper losses in health care coverage, the nonpartisan Congressional Budget Office said in a new analysis, adding to the challenges for Republicans as they try to muscle the bill to passage. The CBO estimates the Senate bill would increase the deficit by nearly $3.3 trillion from 2025 to 2034, a nearly $1 trillion increase over the House-passed bill, which CBO has projected would add $2.4 to the debt over a decade. The analysis also found that 11.8 million more Americans would become uninsured by 2034 if the bill became law, an increase over the scoring for the House-passed version of the bill, which predicts 10.9 million more people would be without health coverage. The stark numbers are yet another obstacle for Republican leaders as they labor to pass Trump's bill by his self-imposed July 4th deadline. Even before the CBO's estimate, Republicans were at odds over the contours of the legislation, with some resisting the cost-saving proposals to reduce spending on Medicaid and food aid programs even as other Republicans say those proposals don't go far enough. Republicans are slashing the programs as a way to help cover the cost of extending some $3.8 trillion in Trump tax breaks put in place during his first term. The push-pull was on vivid display Saturday night as a routine procedural vote to take up the legislation in the Senate was held open for hours as Vice President JD Vance and Republican leaders met with several holdouts. The bill ultimately advanced in a 51-49 vote, but the path ahead is fraught, with voting on amendments still to come. Still, many Republicans are disputing the CBO estimates and the reliability of the office's work. To hoist the bill to passage, they are using a different budget baseline that assumes the Trump tax cuts expiring in December have already been extended, essentially making them cost-free in the budget. The CBO on Saturday released a separate analysis of the GOP's preferred approach that found the Senate bill would reduce deficits by about $500 billion. Democrats and economists decry the GOP's approach as 'magic math' that obscures the true costs of the GOP tax breaks. In addition, Democrats note that under the traditional scoring system, the Republican bill bill would violate the Senate's 'Byrd Rule' that forbids the legislation from increasing deficits after 10 years. In a Sunday letter to Oregon Sen. Jeff Merkley, the top Democrat on the Senate Budget Committee, CBO Director Phillip Swagel said the office estimates that the Finance Committee's portion of the bill, also known as Title VII, 'increases the deficits in years after 2034' under traditional scoring. Fatima Hussein, The Associated Press
CTV News
2 hours ago
- CTV News
Trump says ‘very wealthy' group to buy TikTok
U.S. President Donald Trump said Sunday a group of buyers had been found for TikTok. WASHINGTON - U.S. President Donald Trump said Sunday a group of buyers had been found for TikTok, which faces a looming ban in the United States due to its China ties, adding he could name the purchasers in two weeks. 'We have a buyer for TikTok, by the way,' Trump said in an interview on Fox's Sunday Morning Futures with Maria Bartiromo. 'Very wealthy people. It's a group of wealthy people,' the U.S. president said, without revealing more except to say he would make their identities known 'in about two weeks.' The U.S. president also said he would likely need 'China approval' for the sale, 'and I think President Xi (Jinping) will probably do it.' TikTok is owned by China-based internet company ByteDance. A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before Trump's inauguration on Jan. 20. But the Republican, whose 2024 election campaign relied heavily on social media and who has said he is fond of TikTok, put the ban on pause. In mid-June Trump extended a deadline for the popular video-sharing app by another 90 days to find a non-Chinese buyer or be banned in the U.S. Tech experts quickly described the TikTok kerfuffle as a symbol of the heated U.S.-China tech rivalry. While Trump had long supported a ban or divestment, he reversed his position and vowed to defend the platform - which boasts almost two billion global users - after coming to believe it helped him win young voters' support in the November election. 'I have a little warm spot in my heart for TikTok,' Trump told NBC News in early May. 'If it needs an extension, I would be willing to give it an extension.' Now after two extensions pushed the deadline to June 19, Trump has extended it for a third time. He said in May that a group of purchasers was ready to pay ByteDance 'a lot of money' for TikTok's U.S. operations. The previous month he said China would have agreed to a deal on the sale of TikTok if it were not for a dispute over Trump's tariffs on Beijing. ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be 'subject to approval under Chinese law.'
CTV News
2 hours ago
- CTV News
Alberta strikes deal to off-load remaining batch of controversial children's medicine
Check any cables and reboot any routers, modems, or other network devices you may be using. Allow Chrome to access the network in your firewall or antivirus settings. If it is already listed as a program allowed to access the network, try removing it from the list and adding it again.
