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Micron Boosts HBM4 Ramp-Up: Will It Help MU Lead the AI Memory Race?
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Key Takeaways
Micron is accelerating HBM4 production as rising AI workloads drive demand for high-bandwidth memory.
HBM4 revenues topped $1B, while the 12-high ramp-up is progressing twice as fast as the HBM3E transition.
Faster yield gains, added packaging capacity and customer deals could strengthen Micron's market position.
Micron Technology, Inc. (MU - Free Report) is strengthening its position in the fast-growing artificial intelligence (AI) memory market by accelerating the production of its HBM4 products. As AI models become larger and more complex, demand for high-bandwidth memory (HBM) continues to rise.
The faster HBM4 ramp-up could help Micron Technology capture a larger share of this expanding market while supporting higher revenues and profitability. According to a Counterpoint Research report, MU ended the first quarter of 2026 with a 21% market share in the HBM space, trailing SK Hynix’s (SKHY - Free Report) 58%.
The company's momentum is already visible. During the third quarter of fiscal 2026, Micron Technology generated record revenues of $41.46 billion, up 346% year over year, while non-GAAP earnings reached $25.11 per share compared with $1.91 in the year-ago quarter. AI-driven demand was a major contributor, with annualized data center revenues exceeding $100 billion and data center SSD revenues more than doubling sequentially.
HBM4 is emerging as Micron Technology's biggest growth catalyst. The company has already shipped more than $1 billion in HBM4 revenues, and management said the 12-high HBM4 ramp-up is progressing twice as fast as the earlier HBM3E 12-high transition. Micron Technology also expects HBM4 to achieve mature manufacturing yields much faster, improving production efficiency and profitability. Qualification samples have been delivered to multiple customers, while high-volume shipments are already underway for its lead AI platform.
Industry conditions also remain favorable. Micron Technology expects DRAM and NAND demand to exceed supply beyond calendar year 2027 as AI adoption expands across data centers, enterprise computing and edge devices. Combined with its advanced 1-gamma DRAM technology, expanding packaging capacity and long-term customer agreements, the faster HBM4 ramp-up could help Micron Technology strengthen its competitive position against rivals and remain one of the biggest beneficiaries of the AI memory boom.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 revenues is currently pegged at $129.61 billion, indicating robust year-over-year growth of approximately 247%.
How Do Micron’s Rivals Compare in the AI Memory Race?
SK Hynix remains Micron Technology's biggest rival in the HBM market, while SanDisk (SNDK - Free Report) competes in NAND flash and enterprise storage.
SK Hynix has established an early lead in HBM by supplying memory for leading AI accelerators and continues to expand production to meet surging demand. SK Hynix created the HBM market by jointly developing the very first generation with AMD in 2013. When the generative AI boom arrived, SK Hynix leveraged this head start to become the primary memory supplier for NVIDIA's AI processors.
SanDisk is benefiting from the recovery in NAND pricing and rising demand for high-capacity enterprise SSDs used in AI data centers. In the third quarter of fiscal 2026, the company’s revenues surged 251% year over year to $5.95 billion. However, its growth is tied primarily to flash storage rather than HBM, making it less exposed to the fastest-growing segment of AI infrastructure.
In contrast, Micron Technology is gaining from both HBM and NAND demand, giving it a broader AI opportunity. As AI adoption accelerates, MU's faster HBM4 ramp-up, expanding advanced packaging capacity and balanced exposure across DRAM and NAND could help it strengthen its competitive position against both SK Hynix and SanDisk while supporting long-term revenue and margin growth.
Micron’s Price Performance, Valuation and Estimates
Shares of Micron have surged around 248.4% year to date compared with the Zacks Computer and Technology sector’s return of 13.2%.
Micron Technology YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 6.66, significantly lower than the sector’s average of 23.73.
Micron Technology 12-Month Forward P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Micron’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 791% and 114%, respectively. Bottom-line estimates for fiscal 2026 have been revised upward in the past 30 days and revised northward over the past seven for fiscal 2027.
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Micron Boosts HBM4 Ramp-Up: Will It Help MU Lead the AI Memory Race?
Key Takeaways
Micron Technology, Inc. (MU - Free Report) is strengthening its position in the fast-growing artificial intelligence (AI) memory market by accelerating the production of its HBM4 products. As AI models become larger and more complex, demand for high-bandwidth memory (HBM) continues to rise.
The faster HBM4 ramp-up could help Micron Technology capture a larger share of this expanding market while supporting higher revenues and profitability. According to a Counterpoint Research report, MU ended the first quarter of 2026 with a 21% market share in the HBM space, trailing SK Hynix’s (SKHY - Free Report) 58%.
The company's momentum is already visible. During the third quarter of fiscal 2026, Micron Technology generated record revenues of $41.46 billion, up 346% year over year, while non-GAAP earnings reached $25.11 per share compared with $1.91 in the year-ago quarter. AI-driven demand was a major contributor, with annualized data center revenues exceeding $100 billion and data center SSD revenues more than doubling sequentially.
HBM4 is emerging as Micron Technology's biggest growth catalyst. The company has already shipped more than $1 billion in HBM4 revenues, and management said the 12-high HBM4 ramp-up is progressing twice as fast as the earlier HBM3E 12-high transition. Micron Technology also expects HBM4 to achieve mature manufacturing yields much faster, improving production efficiency and profitability. Qualification samples have been delivered to multiple customers, while high-volume shipments are already underway for its lead AI platform.
Industry conditions also remain favorable. Micron Technology expects DRAM and NAND demand to exceed supply beyond calendar year 2027 as AI adoption expands across data centers, enterprise computing and edge devices. Combined with its advanced 1-gamma DRAM technology, expanding packaging capacity and long-term customer agreements, the faster HBM4 ramp-up could help Micron Technology strengthen its competitive position against rivals and remain one of the biggest beneficiaries of the AI memory boom.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 revenues is currently pegged at $129.61 billion, indicating robust year-over-year growth of approximately 247%.
How Do Micron’s Rivals Compare in the AI Memory Race?
SK Hynix remains Micron Technology's biggest rival in the HBM market, while SanDisk (SNDK - Free Report) competes in NAND flash and enterprise storage.
SK Hynix has established an early lead in HBM by supplying memory for leading AI accelerators and continues to expand production to meet surging demand. SK Hynix created the HBM market by jointly developing the very first generation with AMD in 2013. When the generative AI boom arrived, SK Hynix leveraged this head start to become the primary memory supplier for NVIDIA's AI processors.
SanDisk is benefiting from the recovery in NAND pricing and rising demand for high-capacity enterprise SSDs used in AI data centers. In the third quarter of fiscal 2026, the company’s revenues surged 251% year over year to $5.95 billion. However, its growth is tied primarily to flash storage rather than HBM, making it less exposed to the fastest-growing segment of AI infrastructure.
In contrast, Micron Technology is gaining from both HBM and NAND demand, giving it a broader AI opportunity. As AI adoption accelerates, MU's faster HBM4 ramp-up, expanding advanced packaging capacity and balanced exposure across DRAM and NAND could help it strengthen its competitive position against both SK Hynix and SanDisk while supporting long-term revenue and margin growth.
Micron’s Price Performance, Valuation and Estimates
Shares of Micron have surged around 248.4% year to date compared with the Zacks Computer and Technology sector’s return of 13.2%.
Micron Technology YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 6.66, significantly lower than the sector’s average of 23.73.
Micron Technology 12-Month Forward P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Micron’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 791% and 114%, respectively. Bottom-line estimates for fiscal 2026 have been revised upward in the past 30 days and revised northward over the past seven for fiscal 2027.
Image Source: Zacks Investment Research
Micron currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.