TLDR
- Micron Technology stock jumped 10% to $410.34 after the company announced it began shipping HBM4 memory chips to customers, one quarter ahead of schedule.
- CFO Mark Murphy confirmed Micron is already in large-scale production of HBM4 chips, which are used in AI servers to help processors move data quickly.
- The company said demand for high-bandwidth memory remains much higher than supply and expects tight conditions to continue beyond 2026.
- Micron had been viewed as trailing rivals Samsung and SK Hynix in bringing the newest memory technology to market, raising concerns about missing orders from AI chipmakers like Nvidia.
- Wall Street analysts maintain a Strong Buy rating on the stock with 27 Buy ratings, two Holds, and zero Sells based on the past three months.
Micron Technology stock surged about 10% Wednesday to close at $410.34 after executives delivered an update that caught Wall Street off guard. The memory chip maker announced it has already started shipping its newest high-bandwidth memory product to customers.
CFO Mark Murphy made the announcement at the Wolfe Research investor conference in New York. He said Micron began shipping HBM4 memory chips and is now in large-scale production. The timeline represents a one-quarter acceleration from what the company told investors in December.
The news addressed what Murphy called “inaccurate reporting” about Micron’s progress on the technology. HBM4 chips work alongside AI processors to move data at high speeds. They’ve become a critical component in AI server infrastructure.
Murphy said Micron’s HBM4 product delivers performance exceeding 11 gigabits per second. He expressed confidence in the product’s performance, quality, and reliability. The company expects shipment volumes to ramp up during the current quarter.
Supply Crunch Continues
The CFO painted a picture of persistent supply constraints in the memory market. He said demand remains “much higher than our ability to supply.” Micron expects tight supply-demand conditions to extend beyond 2026.
Those constraints typically support higher prices and stronger profit margins for memory manufacturers. Murphy said the company is working to plan and invest appropriately to meet customer needs over time. He described Micron’s business as being on an “extraordinary trajectory.”
The stock had been under pressure due to concerns about the company’s competitive position. Analysts worried Micron was falling behind Samsung and SK Hynix in bringing the latest memory technology to market. That gap raised questions about whether Micron could win large orders from AI chip makers like Nvidia.
Competitive Position Improves
The accelerated timeline eased those worries. Investors now see Micron entering the AI supply chain sooner than many expected. The shift could boost revenue growth over the next year as AI infrastructure spending continues.
Lynx Equity Strategies analyst KC Rajkumar said the clarification should “put to rest the noise” surrounding Micron’s HBM4 capabilities. The stock climbed 6.3% in early trading before finishing the day up about 10%.
The positive reaction reflects growing importance of high-bandwidth memory for AI applications. Technology companies developing AI hardware and infrastructure are increasing their demand for advanced memory solutions. Micron’s ability to deliver these products on an accelerated timeline positions the company better in this fast-growing market.
Wall Street maintains a bullish stance on the stock. Analysts have issued a Strong Buy consensus rating based on 27 Buy recommendations, two Holds, and zero Sells over the past three months. The average price target sits at $395.30 per share, which represents 3.67% downside from current levels.
Micron stock rose 6.3% Wednesday after Murphy’s presentation at the conference. The company confirmed it has commenced customer shipments of HBM4 and sees volumes ramping successfully this quarter.
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