Micron’s $33.5 Billion Quarter Looms as New 256GB DDR5 Modules Ship and HBM Capacity Sells Out Into 2026

The speed gap is widening. Micron Technology has started shipping samples of 256GB DDR5 RDIMM modules that clock up to 9,200 megatransfers per second — a 40% performance advantage over current production modules. For hyperscale AI data center operators, the combination of higher throughput and lower power consumption is exactly what the order book demands. Alongside that, the company’s 245TB SSD 6600 ION is now in delivery, targeting cloud and AI clients who want more storage per square foot and less energy draw.

But product launches alone don’t explain the sheer scale of the numbers piling up. Micron has guided for third-quarter revenue of $33.5 billion — a 260% jump from a year earlier — with adjusted earnings per share expected to land between $18.90 (GAAP) and $19.15 (non-GAAP). That single-quarter revenue forecast eclipses the company’s entire annual sales for every fiscal year through 2024. In the fiscal second quarter, revenue already surged 196% to $23.86 billion, adjusted EPS came in at $12.20, and gross margins hit nearly 75%. Those are textbook cyclical peaks.

The engine behind it all is high-bandwidth memory for artificial intelligence. Micron has already sold out its HBM capacity through the end of 2026, with the global cloud providers snapping up every available chip. The addressable market for HBM, estimated at $35 billion in 2025, is expected to swell above $100 billion. Contract prices for DRAM, according to Gartner, are set to climb 125% for the full year.

Should investors sell immediately? Or is it worth buying Micron?

It is against this backdrop of relentless operational momentum that the stock has taken a breather. In euro terms, Micron shares closed on Friday at €624.00, down 7.69% on the week, though that still leaves the year-to-date advance at 131.97%. The stock hit a 52-week high of €685.40 in mid-May, and the pullback has cooled what was an overheated rally. Even so, the forward P/E for fiscal 2027 sits below 10, while the multiple for fiscal 2026 is a modest 12.9 — well under the company’s long-term average. Bank of America recently lifted its price target from $500 to $950, maintaining a buy rating and pointing to the strengthening earnings power in the AI memory segment.

Two crosswinds are drawing attention ahead of the J.P. Morgan Global Technology, Media and Communications Conference in Boston on May 20. The first is Micron’s strategic withdrawal from the Chinese data center market, following restrictions imposed by Beijing. China contributed roughly 12% of total revenue in the last fiscal year; the company still serves automotive and smartphone customers there, but the pivot toward higher-margin AI memory for Western buyers is deliberate. The second is a looming labor dispute at rival Samsung. More than 45,000 workers are threatening an 18-day strike starting May 21, which could tighten the already strained supply of DRAM and HBM. Any production disruption at Samsung would likely give Micron’s pricing power an additional boost.

On the trading floor, Micron’s liquidity has been running hot. Over the past 30 days, cumulative volume reached about $598 billion, and Friday’s single-day turnover of $34.82 billion approached the levels seen in Nvidia. A series of insider sales totaling roughly $52.4 million — executed by CEO Sanjay Mehrotra under a pre-established 10b5-1 plan — has been noted, though such plans typically dampen the signaling effect. The broader story remains one of tight supply, breakneck revenue growth, and a product cycle that shows no signs of cresting. All eyes will be on Boston for any comments on HBM4 contracts, pricing beyond 2026, and the financial implications of the China exit.

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