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Micron Rallies as AI Memory Shortage Deepens, With 2026 HBM Supply Fully Booked

Executives describe an unprecedented crunch that could persist beyond 2026.

Overview

  • Micron guided fiscal second-quarter revenue to $18.7 billion, a 132% year-over-year increase.
  • The company says it can meet only about 50% to 66% of near-term AI memory demand despite strong output.
  • Shares rose nearly 8% this week as investors reacted to tightening supply and accelerating AI infrastructure demand.
  • Micron is expanding capacity with a $100 billion New York megafab and a $1.8 billion Taiwan project, with new production expected to ramp in 2027.
  • HBM supply remains constrained by larger clean-room requirements and tight advanced packaging capacity, reinforcing pricing power.