Micron Technology is poised too sell its entire projected supply of High Bandwidth Memory (HBM) for the next fiscal year, signaling strong demand driven by the artificial intelligence boom. The memory and storage giant anticipates revenue of $12.5 billion, plus or minus $300 million, in the first quarter of 2026.
This complete allocation of HBM capacity underscores the critical role memory plays in powering AI applications and highlights the willingness of hyperscalers to invest heavily in the necessary infrastructure. The surge in demand is also boosting Micron’s profitability, with margins “dramatically better” as the HBM shortage persists. Consumers adopting cloud-based AI services may see increased costs as a result of these premium prices.
Micron is responding to the escalating demand with notable capital expenditure, planning $18 billion in investments for both fiscal year 2025 and the following year. This represents a significant increase from the $13 billion spent in fiscal year 2024, with the “vast majority” dedicated to DRAM construction and equipment, according to CFO Mark Murphy.
The company is also focused on bolstering domestic manufacturing, building facilities within the US to reduce reliance on offshore production. Micron is monitoring the potential impact of new US tariff policies, with CEO Sanjay Mehrotra stating the company will “respond to that when they are announced.”
