SANTA CLARA, California, March 10, 2026, 06:12 PDT
Micron Technology said Tuesday it’s teaming up with Applied Materials on next-gen DRAM and high-bandwidth memory for AI processors, plus NAND storage chips—an expansion of their U.S. research efforts, announced just ahead of Micron’s fiscal Q2 results March 18. Micron shares last traded at $389.32, up $19.14 on the day. 1
This announcement drops amid a rush to build out AI data centers, tightening memory supply and pushing chip prices up. Just last month, Reuters pointed out that rising memory costs were already stinging smartphone manufacturers, as more memory production shifted toward AI-focused parts. 2
Micron’s Sanjay Mehrotra called memory and storage “essential enablers of AI.” Over at Applied Materials, CEO Gary Dickerson pointed to the “increasingly vital role” that advanced memory tech will take on in tomorrow’s AI hardware, stressing the weight of R&D collaborations and scaling up output. 3
According to the companies, engineers in Silicon Valley and Boise will focus on materials, process tech, chip design, and advanced packaging. Applied’s EPIC Center—carrying a $5 billion cost and slated to open this year—is aimed at narrowing the gap between research and large-scale manufacturing. 1
Competition in AI memory is intensifying. High-bandwidth memory, or HBM, stacks DRAM chips vertically to speed up data flows into AI accelerators. Samsung said last month it had shipped HBM4 to customers. Data from Counterpoint Research cited by Reuters put SK Hynix ahead in HBM market share in the third quarter of 2025, with Samsung and Micron following behind. 4
Heading into Micron’s earnings, analysts sounded more optimistic. Citi’s Atif Malik lifted his price target to $430, up from $385. Susquehanna’s Mehdi Hosseini was even more aggressive, raising his target to $525 from $345. Hosseini cited stronger memory pricing and steady AI demand as drivers that could keep earnings momentum rolling. 5
But the picture is far from clear. Reports suggesting Nvidia’s Vera Rubin systems could source HBM4 from Samsung and SK Hynix have rattled investors, casting doubt on where Micron fits in. A number of analysts now think supply and demand could balance out by mid-2027—even assuming AI demand doesn’t drop off. 6
Micron isn’t slowing down. In January, it rolled out plans for a $24 billion memory plant in Singapore and struck a $1.8 billion agreement to buy Powerchip’s P5 fab over in Taiwan. Just a month earlier, the company had already hiked its 2026 capital spending target to $20 billion after posting guidance that topped Street estimates for both revenue and profit. 7
