Micron Ramps AI Memory Production Amid Stock Sell-Off

Micron Technology is doubling its production capacity for high-bandwidth memory (HBM) to 100,000 wafers per month by the end of 2026, up from a previous average of 40,000 to 50,000. This expansion follows a period of rapid growth that saw the company's market capitalization exceed $1 trillion and gross margins climb from 40% to over 70%.

Despite these operational gains, Micron shares fell approximately 5.8% to $918.91 on Monday, triggering a broader sell-off in memory and storage stocks. Investors are reassessing AI infrastructure spending due to potential U.S. semiconductor tariffs and calls from industry leaders, including Anthropic CEO Dario Amodei, to slow AI development for safety reasons. The company also faces a patent lawsuit from Netlist regarding DDR5 products.

Market conditions remain tight, with DRAM and NAND prices hitting record highs in August. While Micron management and competitors like SK Hynix suggest supply-demand imbalances for DRAM could persist until 2030, investors are weighing these long-term projections against immediate regulatory risks. Micron is scheduled to report its fiscal fourth-quarter earnings on September 30, where it is expected to show strong results driven by the global memory chip shortage.