Micron Technology finds itself in an unusual bind: the more it produces, the further behind it falls. The memory maker disclosed that it can currently serve just 50% to 67% of customer demand for its hottest DRAM and HBM products, with the shortfall driven by an insatiable appetite from AI infrastructure. The gap is so persistent that CEO Sanjay Mehrotra describes it not as a cyclical spike but as “structural scarcity” — a condition he expects to last well beyond 2026 across both DRAM and NAND markets.
That supply deficit is being addressed head-on. On May 22, 2026, Micron announced it had started production of its 1α (1-alpha) DRAM generation at its Manassas, Virginia facility — the most advanced memory technology ever manufactured on US soil. The new line will quadruple the plant’s DDR4 wafer capacity and cost more than $2 billion to bring online, with qualified volume production slated for the end of next year. While DDR4 is an older standard, the move is deliberate: defense, aerospace, automotive, and industrial customers require chips with long life cycles, secure supply chains, and full traceability. Micron is betting that onshoring this “old” technology for those buyers is just as strategic as pushing the bleeding edge for hyperscalers.
The financial backdrop for these investments is extraordinary. In the second fiscal quarter of 2026, Micron posted revenue of $23.86 billion, handily beating its own guidance, with earnings per share of $12.20. The cloud memory segment alone contributed $5.28 billion at a gross margin of 66%. The stock now trades at roughly $751, giving the company a market capitalisation of nearly $850 billion. Despite that lofty valuation, the forward price-to-earnings ratio hovers around 8 — a reflection that analysts keep raising their earnings estimates as quickly as new capacity comes online.
Should investors sell immediately? Or is it worth buying Micron?
Micron’s multi-year build-out plan totals $200 billion and encompasses three major US sites beyond Manassas. In Boise, Idaho, the first wafer outputs are expected by mid-2027. Construction began in January 2026 at the Clay, New York complex. Combined, these projects are projected to create roughly 90,000 jobs; the Virginia expansion alone accounts for more than 3,100 direct positions. Over the next decade, the company aims to quadruple its US production footprint.
Meanwhile, the technology roadmap remains aggressive. For 2027, Micron has scheduled the introduction of HBM4E memory, and it is accelerating the adoption of EUV lithography across its process nodes. Crucially, management does not anticipate any meaningful new industry-wide supply additions before 2028, which should give Micron considerable pricing leverage for the next two years.
The share price reflects that optimism. In European trading, the stock hit a 52-week high of €691, more than doubling since the start of the year and surging over 730% in the past twelve months. The rally is fuelled by a potent mix: AI-driven demand, a massive domestic capacity expansion, and a structural supply shortfall that shows no sign of easing.
Ad
Micron Stock: Buy or Sell?! New Micron Analysis from May 26 delivers the answer:
The latest Micron figures speak for themselves: Urgent action needed for Micron investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from May 26.
Micron: Buy or sell? Read more here...
