Micron Sells Out 2026 HBM Capacity Amid AI Surge

Micron Technology, Inc. has transitioned from a cyclical commodity provider to a central AI infrastructure player, resulting in its entire 2026 high-bandwidth memory (HBM) capacity being sold out under long-term, fixed-price contracts. CEO Sanjay Mehrotra reported that the company can currently satisfy only 50% to 66% of customer demand for HBM, which is essential for AI accelerators produced by Nvidia and Advanced Micro Devices. This supply scarcity, coupled with demand from hyperscalers like Microsoft, Alphabet, Amazon, and Meta Platforms, has tripled data center revenue year-over-year in Q2 and driven a nearly 150% surge in share prices during 2026.

On May 22, 2026, the company expanded its domestic capabilities by beginning the manufacture of 1-alpha DRAM at its facility in Manassas, Virginia. This initiative, supported by a $2 billion investment and government incentives, targets the defense, aerospace, automotive, and medical sectors. Micron describes this as the most advanced memory technology ever produced in the United States.

Financial analysts from Mizuho and Melius Research recently raised their price targets for the company to $800 and $1,100, respectively. These adjustments reflect strong AI server demand and potential supply risks stemming from a possible strike at competitor Samsung Electronics.