Why Micron Is Doubling Down While the HBM Shortage Persists

Micron raised its 10-year U.S. investment plan to $250 billion to expand fabrication capacity and HBM technology as memory shortages persist amid competition with SK Hynix.

Analysts rate Micron a consensus Buy with 92% Buy-side bias among 38 analysts, forecasting nearly 30% upside and a high-end price target of $2,000.

Micron trades at about 12 times current-year earnings, a discount to peers, with institutional investors buying on balance and supporting limited downside risk.

Investors looking ahead to when the high-bandwidth memory (HBM) shortage will end can start looking a little further out. Micron’s NASDAQ: MU response to SK Hynix's bold U.S. entry reveals that HBM shortages persist and will likely linger into the next decade (as indicated by the SK Hynix CEO), and that both companies are scrambling to ramp production.

As of 12:10 PM Eastern This is a fair market value price provided by Massive. Learn more. 52-Week Range $103.38 ▼ $1,255.00 Dividend Yield 0.06% P/E Ratio 21.07 Price Target $1,263.76 Add to Watchlist While SK Hynix will use its IPO funds to bolster U.S. capacity, Micron is using its robust cash flow and financial position to do the same. The company upped its planned 10-year investment outlook to $250 billion domestically , money to be spent on U.S.-based fabrication capacity and HBM technology advancement.

The battle is for market share. SK Hynix commands a lion’s share of the market due to its close ties with NVIDIA NASDAQ: NVDA , but its dominance isn’t assured. Micron, for its part, is working to align more closely with NVIDIA’s standards to carve out a larger share of business from this single client. Meanwhile, Mic...