Micron announced that its HBM (High Bandwidth Memory) production is sold out through 2026, with data center revenue growing 150% YoY.

Micron Technology (NASDAQ: MU) is trading at $914.43, having cleared the 1.272 Fibonacci extension at $862.46 and approaching the 1.618 level at $919.75. This momentum is supported by robust fundamentals: Q2 FY2026 revenue surged 62% year-over-year to $8.71 billion, Data Center revenue grew more than 150%, and management lifted full-year guidance to $31.5–$33.5 billion. Most significantly, HBM3E is sold out through much of 2026, marking a structural shift in the business model.

In Q2 FY2026, Micron delivered across virtually every metric. Revenue rose 62% year-over-year to $8.71 billion. Non-GAAP earnings per share came in at $1.85, well above Street expectations. Non-GAAP gross margin expanded to 45.8%, driven by a product mix shift toward higher-value HBM and data center DRAM at the expense of lower-margin consumer memory. Data Center revenue—which includes both HBM and enterprise DRAM—grew more than 150% year-over-year, the fastest rate Micron has recorded. The company raised full-year FY2026 revenue guidance to $31.5–$33.5 billion, implying sequential revenue growth through the remainder of 2026.

The most important revelation concerns HBM allocations. Micron is sold out on HBM through much of 2026, meaning the company cannot meet all existing demand. HBM3E, Micron's current-generation high-bandwidth memory, sits directly atop the interposer of Nvidia's H100, H200, and Blackwell GPUs—the memory stack that powers the GPU itself. Only three vendors globally—Micron, Samsung, and SK Hynix—can produce HBM at commercial scale. Micron's sold-out position reflects multi-year supply contracts with major hyperscalers at contracted pricing. This represents a fundamental shift: the HBM business is transitioning from commodity cycles to a visibility-driven model with long-term revenue certainty.

Unlike standard DRAM, which is a commodity determined by global supply-demand dynamics, HBM is a custom-manufactured product requiring months for qualification. The per-gigabyte cost for HBM is substantially higher than commodity DRAM precisely because switching suppliers once a hyperscaler is in the deployment phase of an AI data center is extremely difficult. HBM manufacturing requires a unique stack-based approach mastered by only a few companies globally, with many months of qualification and high switching costs. According to CEO Sanjay Mehrotra, HBM can be thought of as 10–20 times more memory intensive than standard DRAM, driven by the shift from traditional workloads to massively parallel AI workloads.

These structural forces make the 45.8% non-GAAP gross margin expansion a durable trend rather than a cyclical anomaly. Micron is investing heavily in HBM and currently produces its 1beta and 1gamma DRAM process nodes with improved power and density supporting higher-end HBM products. U.S. and Japan manufacturing expansion, backed by CHIPS Act funding, reduces geopolitical supply chain risk and provides hyperscalers with domestic sourcing assurance. Meanwhile, legacy DRAM markets—PCs, smartphones, and automotive—are recovering after the 2024–2025 downturn. The combination of an improving legacy DRAM business alongside current-generation HBM sold out through 2026 is a position unlikely to remain valued at a discount indefinitely.

On the technical front, MU has cleared strong bullish candles with volume expansion signaling aggressive buyer participation. The RSI is trading between 61 and 78, indicating strong momentum without yet exhausted conditions. Dynamic support has risen cleanly from the recent low at $651.84, with the stock generating consistently higher highs and higher lows. The 1.618 Fibonacci extension at $919.75 stands as the next near-term target—just $5.32 away. A close above $920 would open the door to the 2.0 Fibonacci extension at $983. Key support resides at $863–$862 (the previously broken-out 1.272 level) and $734.23 on a deeper pullback.

The bull case rests on 62% revenue growth, Data Center up 150% year-over-year, 45.8% non-GAAP gross margins at structural levels, and full-year guidance of $31.5–$33.5 billion. The next major catalyst is Q3 FY2026 earnings, due late August. Key risks include Samsung and SK Hynix competing aggressively for HBM market share and hyperscaler AI capital expenditures moderating, which would slow near-term HBM growth demand.