TLDRs:
- Micron gains 2.3% as analysts anticipate strong Q2 earnings.
- Nvidia favors Samsung, SK Hynix for Vera Rubin HBM4 launch.
- DRAM demand projected to surge 171% in 2026 versus last year.
- Micron’s early HBM4 shipments reinforce investor confidence despite competition.
Shares of Micron Technology (MU) rose roughly 2.3% on Monday, with investor confidence buoyed by bullish DRAM projections and positive analyst sentiment.
Both Citi and Susquehanna raised their price targets ahead of the company’s fiscal second-quarter earnings report, scheduled for March 18. The stock traded at $378.78 in afternoon sessions, reflecting optimism despite recent industry news.
Vera Rubin Launch Skips Micron
Over the weekend, Korean media reported that Nvidia’s upcoming Vera Rubin AI platform will rely on HBM4 chips supplied by Samsung Electronics and SK Hynix, leaving Micron out of the initial rollout. While Micron will supply HBM4 memory for Rubin CPX, targeted at inference rather than training workloads, the company’s chips are not expected in the top-tier launch.
Allocation and pricing details are still fluid, with Nvidia reportedly pushing for memory speeds beyond 10 gigabits per second, surpassing current JEDEC HBM4 specifications.
DRAM Demand Fuels Investor Confidence
Despite the Vera Rubin snub, Wall Street remains positive on Micron’s near-term outlook. Citi raised its price target to $430, while Susquehanna set an even higher target of $525. DRAM, the core memory for servers and PCs, is forecasted to jump 171% in 2026 compared to 2025, propelled by strong demand from data centers.
Analyst Richard Windsor of Radio Free Mobile suggested that Micron could still enter the Vera Rubin supply chain later this year and may avoid any revenue hit due to limited industry capacity being already allocated through 2026.
Micron’s Strategic Moves and Industry Competition
Micron has reinforced investor confidence by locking in pricing and volume deals for its 2026 HBM production. The company began shipping HBM4 a quarter ahead of schedule, with CFO Mark Murphy emphasizing the memory’s reliability and performance.
However, competition is intensifying, Samsung has already shipped HBM4 to clients, while SK Hynix has completed internal certification and established production systems. Should top-tier Vera Rubin allocations remain with Samsung and SK Hynix, Micron may focus on mid-tier or alternative programs. Analysts caution that any slowdown in HBM demand could lead to price pressure as suppliers shift capacity back toward standard DRAM.
Q2 Earnings in Focus
All eyes are now on Micron’s earnings report on March 18, which will provide a clearer picture of how effectively the company can leverage the ongoing AI-driven memory shortage. Susquehanna analyst Mehdi Hosseini noted that earnings may peak by mid-2027 before supply-demand dynamics normalize. Investors will watch closely to see whether Micron’s strategic positioning and early production can offset initial setbacks from the Vera Rubin launch.
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