How HBM Makes Micron Unstoppable

Summary

• Micron’s HBM revenue surged nearly 50% sequentially, with data center DRAM now comprising the majority of total DRAM sales.
• Gross margins climbed into the high-30% range, supported by tight inventory discipline that reduced days-on-hand, while bit shipments rose double digits.
• Forward P/E remains under 16x despite EPS projected to grow 50% from ~$7.80 in FY25 to ~$12 in FY26.
• EV/EBITDA compresses to ~7.8x forward, reflecting mispriced structural margin durability in HBM, not captured in legacy DRAM models.
• Co-design ties with hyperscalers and next-gen HBM4 sampling secure multi-year supply contracts that stabilize ASPs even amid industry oversupply risk.

SweetBunFactory

Amid all the noise about cyclical memory bears and chatter of a DRAM oversupply, Micron (NASDAQ:MU) is quietly executing a structural shift that the market hasn’t fully priced in yet. Micron's rapid ramp-up in high-bandwidth memory (HBM), prudent inventory management, shock-absorption

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