[News] Micron Hikes CapEx to $20B with 2026 HBM Supply Fully Booked; HBM4 Ramps 2Q26

Amid tight supply across both mainstream products and high-end memory such as HBM, Micron sailed through its latest earnings call, posting record results across the board. The company said its 1QFY26 (ended November 27) total revenue—spanning DRAM, NAND, HBM, data center, and every business unit—hit all-time highs, underscoring strong momentum heading into FY26.

Notably, CEO Sanjay Mehrotra highlighted that Micron has already locked in pricing and volume agreements covering its entire calendar 2026 HBM supply, including HBM4. The company also plans to raise FY26 capital expenditures to USD 20 billion, up from USD 18 billion, while engaging in multi-year supply negotiations with customers, according to its presentation materials.

Supply Crunch to Last Through 2026

Even so, the company conceded that supply remains stretched, saying that despite aggressive efforts, it still cannot fully satisfy demand across all market segments. iNews24 reported CEO Sanjay Mehrotra saying that Micron can currently meet only about 50% to 66% of demand from its core customers.

Micron added that tight conditions in both DRAM and NAND are set to linger, extending through and beyond calendar 2026. The U.S. memory giant is working hard to support its customers’ demand during this time, and the firm expects to grow its DRAM and NAND bit shipments approximately 20% in calendar 2026, it stated.

HBM4 Concerns Addressed

Addressing market concerns that its HBM4 share at NVIDIA could lag behind SK hynix and Samsung, Micron pushed back, emphasizing that its HBM4—boasting industry-leading speeds above 11 Gbps—remains firmly on track. The company said HBM4 is slated to ramp with high yields in 2Q26, aligning closely with customers’ product rollout timelines.

According to The Elec, citing CEO Sanjay Mehrotra, customer demand will determine the 2026 sales mix of HBM3E and HBM4, with both products expected to significantly contribute to next year’s revenue.

Micron Smashes Expectations, Projects Record Q2 and FY26 Results

As highlighted by Reuters, Micron is projecting Q2 revenue of $18.7 billion, give or take $400 million, far surpassing analysts’ consensus of $14.2 billion.

For the just-concluded fiscal first quarter, the company reported sales of $13.64 billion and adjusted earnings of $4.78 per share, beating analyst expectations of $12.85 billion in revenue and $3.95 per share in profit, Reuters notes.

The company said it expects to set new highs in revenue, gross margin, EPS, and free cash flow for both Q2 and the full fiscal year 2026, projecting that business performance will continue to strengthen throughout the year.

As noted by Bloomberg, soaring demand for AI computing components is outpacing supply, giving a boost to companies like Micron. At the same time, shortages have emerged in the simpler memory used in personal computers, driven in part by the industry’s shift toward producing more advanced memory for AI data centers, the report adds.

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(Photo credit: Micron)