Micron targets HBM market share aligning with overall DRAM share by H2 2025.

Micron targets HBM market share aligning with overall DRAM share by H2 2025.

Micron Technology, Inc. (MU) is intensifying its efforts to capture a significant portion of the high-bandwidth memory (HBM) market by the second half of 2025. This strategic move aligns with the company's broader objective to increase its overall DRAM share, driven by strong demand from the data center and AI sectors.

According to recent reports, Micron has sold out its entire HBM capacity for 2025, indicating robust demand for its high-performance memory solutions [1]. The company is also negotiating new contracts for next year, further underscoring its market dominance. Micron's HBM3E technology, which is preferred by major chipmakers like NVIDIA Corp. (NVDA) and Broadcom Inc. (AVGO), is expected to lead this growth.

The demand for HBM is fueled by the increasing need for efficient data storage in AI and high-performance computing applications. Market researcher Yole Group estimates that HBM revenue will nearly double this year, reaching around $34 billion [1]. Micron, being a key player in this market, is well-positioned to capitalize on this trend.

Moreover, Micron's recent commitment to domestic chip manufacturing and R&D, totaling $150 billion and $50 billion respectively, demonstrates its long-term strategy to strengthen its position in the memory market. This investment will create an estimated 90,000 jobs, further cementing Micron's role in the domestic semiconductor industry [2].

Analysts have been bullish on Micron's prospects, with Wedbush boosting its price target to $150 and Morgan Stanley maintaining an equal-weight rating with a price target of $98. Despite the strong rally in Micron's stock price, these firms remain optimistic about the company's earnings potential, driven by the growing demand for HBM and AI applications [2].

In conclusion, Micron Technology's strategic push for HBM market share by H2 2025 is a testament to its commitment to innovation and market leadership. With strong demand from the data center and AI sectors, and a robust investment plan, Micron is well-positioned to achieve its objectives.

References:
[1] https://finance.yahoo.com/news/zacks-analyst-blog-highlights-micron-094300712.html
[2] https://finance.yahoo.com/news/analysts-reboot-micron-technology-stock-200700300.html