Micron’s Stellar Forecast Signals Unabated AI Demand

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Micron Technology's latest financial performance offers compelling evidence that the artificial intelligence revolution continues to gather momentum. The memory chip manufacturer has shattered market expectations with its results and forward guidance, effectively silencing any doubts about sustained demand. As analysts scramble to revise their price targets upward, the company faces a unique challenge: its production capacity for a key component is fully booked for the next two years.

The catalyst for the current market enthusiasm stems from Micron's report for the first quarter of its fiscal 2026. Revenue surged 57% year-over-year to $13.64 billion. However, the true driver for investor optimism lies in the outlook. Management has projected revenue of approximately $18.7 billion for the ongoing second quarter, indicating an acceleration in growth rarely seen even within the volatile semiconductor sector.

Profitability metrics are experiencing a parallel explosion. The company anticipates its gross margin will climb to a record 68% in the current quarter. This trajectory underscores Micron's ability to leverage the prevailing market conditions not merely for volume growth, but more significantly, for substantial price increases.

Supply Sold Out Through 2026

This surge is fueled by insatiable demand for High Bandwidth Memory (HBM), the technological backbone of modern AI systems. Company leadership explicitly confirmed that its HBM production capacity is entirely sold out for both 2025 and 2026. This allocation includes the upcoming HBM4 generation.

Micron stated it can currently fulfill only about 50 to 60 percent of the demand from its top-tier customers. This artificial scarcity solidifies the firm's pricing power in a market whose total volume is forecast by the company to grow to $100 billion by 2028.

Wall Street Declares a "Supercycle"

The reaction from Wall Street was swift and decisive. Rosenblatt Securities captured attention with a drastic increase in its price target, now setting a fair value of $500 per share. The analysts cite a structurally distinct "AI memory supercycle" as the rationale. Major institutions like Morgan Stanley and JPMorgan followed suit, raising their own targets to as high as $350.

The equity reflects this optimism, currently trading at 223.30 Euros and within striking distance of its 52-week high of 225.55 Euros. Since the start of the year, the stock has recorded a gain exceeding 162 percent.

With order books filled to capacity and a clear technology leadership position in the HBM segment, Micron's path for the coming quarters appears well-defined. The powerful combination of constrained supply and exploding demand is poised to support margins and secure robust earnings momentum well into 2026.