TLDR
- Micron Technology shares surged 10% to $410.34 on Wednesday after the company announced it has begun shipping HBM4 memory chips to customers.
- CFO Mark Murphy said Micron is in large-scale HBM4 production with shipments ramping this quarter, one quarter ahead of the December timeline.
- The company’s HBM4 chips deliver performance exceeding 11 gigabits per second and are critical components in AI server infrastructure.
- Supply remains significantly below demand with tight market conditions expected to continue beyond 2026, supporting pricing power.
- The news eased investor concerns that Micron was falling behind Samsung and SK Hynix in the race to supply AI chipmakers like Nvidia.
Micron Technology stock posted a 10% gain Wednesday, finishing at $410.34 after company leadership provided a major update on its newest memory chip technology. The announcement caught investors by surprise and sent shares higher throughout the trading session.
CFO Mark Murphy delivered the news at the Wolfe Research investor conference in New York. He confirmed Micron has commenced customer shipments of HBM4 memory chips and is operating at large-scale production levels.
The timeline represents a quarter-earlier start than what Micron communicated to investors in December. Murphy specifically addressed concerns about the company’s HBM4 progress, calling previous reports “inaccurate.”
HBM4 chips are essential components in AI server systems. They enable AI processors to move data at high speeds. As AI infrastructure spending accelerates, demand for these advanced memory solutions has intensified.
Strong Performance Metrics
Murphy highlighted that Micron’s HBM4 product achieves performance above 11 gigabits per second. He expressed high confidence in the product’s performance specifications, quality standards, and reliability benchmarks.
The CFO painted a picture of robust demand across Micron’s business. He said customer demand substantially exceeds the company’s ability to supply products. This imbalance creates favorable pricing conditions for the memory manufacturer.
Micron expects supply-demand tightness to persist beyond 2026. The company is planning investments to better meet customer requirements over the long term. Murphy characterized Micron’s business momentum as being on an “extraordinary trajectory.”
These supply constraints typically translate to pricing power and improved profit margins. Memory chip makers benefit when they can’t produce enough to satisfy market demand.
Investor Concerns Addressed
The stock had been under pressure due to competitive positioning worries. Market participants feared Micron was losing ground to Samsung and SK Hynix in developing next-generation memory technology.
This perception raised doubts about whether Micron could win substantial orders from leading AI chip manufacturers like Nvidia. The accelerated HBM4 deployment directly addresses these concerns.
Lynx Equity Strategies analyst KC Rajkumar commented that the clarification should eliminate speculation about Micron’s HBM4 capabilities. The stock initially rose 6.3% before climbing to a 10% gain by market close.
The rally demonstrates how critical advanced memory technology has become for AI applications. Companies building AI systems require cutting-edge memory solutions to maximize processing capabilities.
Wall Street analysts maintain optimistic views on Micron. The stock holds a Strong Buy consensus rating with 27 Buy recommendations, two Hold ratings, and zero Sell ratings from the past three months.
The average analyst price target sits at $395.30 per share, suggesting 3.67% downside from current levels. However, the accelerated HBM4 timeline could prompt analysts to revise their models and price targets higher.
Micron’s faster-than-expected ramp of HBM4 production strengthens its competitive position in the AI memory market. The company confirmed shipment volumes will increase throughout the first quarter of 2026 as production scales.
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