Micron Technology (MU) aims to bolster its position in the high-bandwidth memory (HBM) market. The company plans to ramp up production of its 12-stack HBM3E memory and supply it to its key customer, Nvidia (NVDA). It must be noted that the 12-stack HBM3E memory boasts 20% lower power consumption and 50% higher capacity compared to the 8-stack HBM3E memory standard, making it ideal for power-efficient and high-demanding AI workloads.
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MU completed the development of 12-stack HBM in September 2024 and has actively showcased samples to key customers, including Nvidia. Importantly, Micron plans to prioritize 12-stack HBM production in the second half of 2025.
Looking ahead, Micron is also developing HBM4, with plans to make it available in 2026. It is worth highlighting that HBM4 is expected to deliver a performance boost of over 50% compared to HBM3E.
Competition in HBM Market Heats Up
While Micron is leading the HBM market, Samsung Electronics (SSNLF) faces challenges. Samsung is still struggling to secure Nvidia’s validation for its 8-layer HBM3E. Further, the company’s 12-layer version is under development with limited production expected until the second quarter of 2025. This delay could impact Samsung’s market share in the high-performance computing (HPC) market, where HBM is a critical component.
To counter MU’s progress, Samsung seeks to improve its HBM3E memory by upgrading its manufacturing processes and materials. The company also plans to introduce HBM4 using advanced 1c DRAM technology by 2025.
At the same time, SK Hynix, another major player in the semiconductor market, is speeding up the development of HBM4 to meet the rising demand for advanced memory solutions.
Is MU a Good Stock to Buy Right Now?
Turning to Wall Street, MU stock has a Strong Buy consensus rating based on 21 Buys and two Holds assigned in the last three months. At $137.15, the average Micron stock price target implies a 37.81% upside potential. Shares of the company have gained 18.25% year-to-date.
