Micron Stock Pops 4.5% Before Earnings as Entire 2026 Supply Sells Out on Huge AI Demand

Micron Technology MU +4.50% ▲ is reporting its second-quarter results today, Wednesday, March 18, after the market close. The stock rose 4.5% yesterday and was up 0.63% in pre-market trading today, as the company confirmed it has already sold every single high-bandwidth memory chip it can produce through the end of 2026. This unprecedented demand from AI data centers has created a massive supply squeeze that is fundamentally changing the memory market. At Tuesday’s close, the stock reached $461.69, marking a 255% surge over the last six months.

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Wall Street Braces for a Historic Report from Micron

Wall Street is bracing for a historic report today. Analysts expect adjusted earnings to hit $9.19 per share, more than five times higher than last year’s $1.56. Sales are projected to reach a record $19.8 billion, a staggering 146% jump. Wedbush analyst Matt Bryson recently raised his price target for the stock to $500, explaining that “Micron’s entire HBM production capacity for the remainder of the 2026 calendar year is already 100% sold out under binding long-term agreements.” This guaranteed revenue provides a level of stability the company has never seen before.

Severe Supply Gaps Grant Micron Unmatched Pricing Power

The current shortage of AI memory is so extreme that Micron can only fulfill a fraction of what its customers want. Management has publicly stated that the company can only meet “50% to two-thirds of memory orders” from its largest buyers. Because it takes years to build new factories, this “structural shortage” is expected to last well into 2027. This lack of supply allows Micron to command much higher prices, pushing its gross profit margins toward a projected 68% this quarter.

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Micron’s Early HBM4 Ramps Lock in Nvidia Partnerships

Micron is moving even faster than expected on its next generation of technology. The company recently revealed that its HBM4 36GB chips have already entered high-volume production, one full quarter ahead of schedule. These chips are designed specifically for Nvidia’s NVDA -0.70% ▼ upcoming Vera Rubin AI platform. Micron is securing its spot as a primary supplier for the world’s most powerful AI chips because it is launching this technology early. Analysts at Wells Fargo noted that this operational progress “confirms the strength of the AI-driven memory super-cycle.”

Is Micron a Good Stock to Buy?

Turning to TipRanks, Wall Street has a Strong Buy consensus rating on Micron stock based on 25 Buys and one Hold recommendation. The average 12-month MU stock price target of $465.80 indicates 0.9% upside potential.

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