Feb. 2 at 8:28 PM
Micron Technology is benefiting from a severe memory chip shortage that has pushed DRAM prices to their highest levels since 2019, prompting Phillip Capital to initiate coverage with a Buy rating. Demand for Micron’s high-bandwidth memory remains strong, with HBM capacity sold out through 2026 alongside market leader SK Hynix.
Supply constraints across the industry and sustained AI infrastructure investment are driving DRAM price increases, which are expected to accelerate in fiscal 2026. Micron’s HBM3E products are already designed into Nvidia’s Blackwell GPUs and AMD’s MI355 GPUs, supporting strong revenue growth.
Phillip Capital highlighted Micron’s next-generation HBM4 as a potential inflection point, with ramp-up expected in the second quarter of 2026 and projected speeds exceeding 11 gigabits per second per pin, potentially enabling market share gains versus SK Hynix as volumes scale.
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