TLDR
- Micron Technology stock jumped 10% to $410.34 Wednesday following CFO Mark Murphy’s announcement that HBM4 memory chip shipments have already begun.
- The company is running large-scale HBM4 production with volumes expected to ramp during the current quarter, beating the December timeline by one quarter.
- Murphy said Micron’s HBM4 delivers performance above 11 gigabits per second with strong quality and reliability for AI server applications.
- Customer demand substantially outpaces Micron’s production capacity, with tight supply conditions forecast to extend beyond 2026.
- The accelerated launch alleviates worries that Micron was trailing Samsung and SK Hynix in securing orders from AI chipmakers like Nvidia.
Micron Technology shares soared 10% Wednesday to close at $410.34 after executives provided an update that exceeded investor expectations. The memory chip manufacturer revealed it has started delivering its latest AI memory technology to customers.
CFO Mark Murphy shared the development during the Wolfe Research investor conference in New York. He confirmed Micron has begun shipping HBM4 memory chips and reached large-scale production capacity.
The timeline beats the company’s previous guidance by one full quarter. Micron had told investors in December to expect HBM4 shipments to begin later in 2026. Murphy described earlier media reports about the product’s status as “inaccurate.”
HBM4 chips play a vital role in AI infrastructure. They connect to AI processors and enable rapid data transfer speeds. The technology has become increasingly important as companies expand their AI computing capabilities.
Product Specifications and Market Dynamics
Murphy detailed that Micron’s HBM4 achieves performance levels exceeding 11 gigabits per second. He voiced strong confidence in the product’s quality metrics and long-term reliability for demanding AI workloads.
The CFO described an unusually strong demand environment. Customer orders significantly exceed what Micron can currently manufacture. This supply shortage creates favorable market conditions for the company.
Micron anticipates the supply-demand imbalance will continue well into 2026 and potentially beyond. The company is evaluating capacity investments to better serve customer needs in future years. Murphy described the business environment as “extraordinary.”
When supply runs short relative to demand, memory chip makers typically enjoy pricing strength. This dynamic supports higher revenue per chip and improved profit margins across the business.
Competitive Position Strengthens
Investor sentiment had turned cautious on Micron in recent months. Concerns centered on whether the company could keep pace with rivals Samsung and SK Hynix in advanced memory development.
Those worries intensified around Micron’s ability to win major contracts from AI chip leaders like Nvidia. The earlier-than-planned HBM4 rollout directly counters this narrative.
Lynx Equity Strategies analyst KC Rajkumar said the update should end speculation about Micron’s product capabilities. Shares initially gained 6.3% before accelerating to finish up 10% for the day.
The market response underscores growing recognition of advanced memory’s role in AI systems. Technology companies require increasingly sophisticated memory solutions to support next-generation AI processors.
Wall Street remains constructive on Micron’s outlook. Analysts have assigned a Strong Buy consensus rating based on recent coverage. The breakdown includes 27 Buy ratings and two Hold ratings with no Sell recommendations over the past three months.
Analyst price targets average $395.30 per share, implying modest downside from Wednesday’s closing price. Some analysts may revise their targets upward following the accelerated product launch.
Micron confirmed its HBM4 shipment volumes will scale up throughout the first quarter of 2026. The company is in large-scale production and has commenced deliveries to multiple customers for AI server applications.
