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Quick Look
- Micron’s HBM memory supply is fully booked through 2026, with demand expected to exceed supply well into 2027 or beyond.
- Strategic global expansion and pricing power position Micron to outperform conservative revenue forecasts, especially in AI-driven markets.
- Analyst upgrades and bullish sentiment support continued upside, with high-end price targets implying significant room for further gains.
If you're thinking, 2027? That’s quite a way off; you might not realize that Micron’s (NASDAQ: MU) key product is already fully booked through 2026. It's the 2027 forecasts—uncertain in valuation by analysts—that will influence this stock in 2026.
HBM memory, the memory powering the GPUs on which AI is run, is sold out. That’s leading to global shortages and, for Micron, an opportunity to expand production and take share. It is a leading provider of advanced HBM memory components. The latest news is groundbreaking at its Clay, NY, location, but that is a catalyst for the future. The Clay facility won’t begin phasing operations for several years, making other projects more impactful in the near term.
In the near term, Micron has several expansions underway, with the first expected to go live this year. An advanced packaging facility in Singapore strengthens the company’s position in the AI supply chain, enabling expanded and accelerated packaging of critical HBM components. The move also moves Micron’s production away from China/Taiwan while positioning it for market share gains. After that, facilities in Boise and Japan will come online by mid-2027 and late 2028, further boosting HBM capacity. The Boise expansion consists of two facilities, Fab 1 and Fab 2, which will boost supply while strengthening Micron’s domestic footprint and domestic AI manufacturing capabilities.
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HBM Demand Drives Higher Prices, Supply Won’t Catch Up Soon
Demand for HBM memory is so high that not only is Micron sold out, but its competitors are as well. The impact is seen in pricing, which soared by as much as 60% in 2025 as contracts were hammered out, and in revenue, which was a blowout in Q1 fiscal year 2026. HBM4, the next generation, is expected to launch at scale this year, and it is also sold out.
The optimistic forecast is that HBM supply shortages will persist at least until early 2027, and the odds are high that they will persist much longer. While production is ramping, Micron says it can meet about 60% of its 2026 demand, suggesting supply will struggle to keep up with demand in 2027 as well. The more pessimistic forecasts have supply shortages lingering into 2028 due to high data center demand.
The forecast for 2026 is for Micron’s revenue to grow approximately 100% compared to the prior year. The company will likely outperform its consensus estimate; the real question is what 2027 will look like. As it stands, the consensus reported by MarketBeat is only 20% revenue growth, which seems unlikely given the 2026 shortfalls and rising prices. The more likely scenario is that revenue will grow at a more robust pace, underpinned by ramping production, rising prices, and HBM4 sales.
Bullish Analysts Trends Support and Lead Micron’s Stock Price
Analysts' trends are bullish and likely to remain so at least through year’s end. 100% of analysts are increasing their targets, but so far, most of the impact is on the near-term outlook, including 2026 and 2027. Longer-term forecasts are rising, but not at the same pace, leaving room for this trend to continue as the year progresses.
Micron ranks second for sentiment and price target trends among the Most Upgraded Stocks tracked by MarketBeat, with 37 analysts giving it a consensus Buy rating. The market is front-running the consensus price target by approximately 10% as of mid-January, but the consensus price target trend provides market support as it is up more than 100% in the last 12 months. The trend also leads the market, with high-end forecasts showing more than 30% upside.
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Micron’s Strong Uptrend Not Over Yet
Micron reached a peak in late December 2025/early January 2026, but its uptrend isn’t over. Far from it. The MACD, specifically, indicates strength and converges with the high, suggesting higher highs are coming. The question is whether the market consolidates or corrects before advancing, and it appears to be consolidating in January. The trigger for bulls will be a move to new highs. It will signal the continuation of the trend and the potential for this market to advance another $100, approaching the analysts’ high-end target.
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