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    Why Micron Technology (MU) Is Up 6.7% After Fully Booking Its 2026 HBM Capacity And What’s Next

    Simply Wall St·01/06/2026 20:17:41
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    • In recent days, Micron Technology reported record revenue and margin expansion as AI-driven demand for high-bandwidth memory and DRAM collided with global supply shortages, leaving its 2026 HBM capacity fully booked.
    • This surge has positioned Micron as a central beneficiary of what many analysts describe as a multi‑year AI-related memory supercycle, reshaping expectations for its earnings power and capital spending.
    • We'll now examine how Micron's fully booked 2026 high-bandwidth memory capacity affects its existing investment narrative and long-term earnings assumptions.

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    Micron Technology Investment Narrative Recap

    To own Micron today, you need to believe that AI-driven demand for DRAM and high-bandwidth memory can stay strong enough to offset the sector’s cyclicality and heavy capital needs. The news that Micron’s 2026 HBM capacity is already sold out reinforces the current bull case around pricing and earnings power in the near term, while the biggest risk remains how quickly competing suppliers and new capacity could eventually ease the present supply squeeze.

    Among recent announcements, Micron’s decision to lift its fiscal 2026 capital expenditure forecast to US$20,000,000,000 stands out in light of the fully booked HBM capacity. That higher capex ties directly to the key catalyst of AI infrastructure buildout and rising bit demand, but it also underlines how much ongoing investment is required to defend share and margins in a fiercely competitive memory market.

    Yet while tight supply is helping Micron today, investors should also be aware of how quickly new capacity and rival HBM offerings could...

    Read the full narrative on Micron Technology (it's free!)

    Micron Technology's narrative projects $53.6 billion revenue and $13.6 billion earnings by 2028. This requires 16.6% yearly revenue growth and about a $7.4 billion earnings increase from $6.2 billion today.

    Uncover how Micron Technology's forecasts yield a $249.31 fair value, a 20% downside to its current price.

    Exploring Other Perspectives

    MU 1-Year Stock Price Chart
    MU 1-Year Stock Price Chart

    The Simply Wall St Community’s 24 fair value estimates for Micron span roughly US$150 to about US$305, illustrating just how far apart individual views can be. Against that wide range, the current focus on AI driven memory demand and fully booked 2026 HBM capacity highlights why you may want to compare several different earnings and risk assumptions before deciding how Micron fits into your portfolio.

    Explore 24 other fair value estimates on Micron Technology - why the stock might be worth as much as $305.29!

    Build Your Own Micron Technology Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.