Micron Bets Big on HBM4E: Will Custom Chips Lift Revenues Further?
Anirudha Bhagat
Thu, October 16, 2025 at 8:44 AM EDT 3 min read
excerpt:
Micron Technology, Inc. MU is making a major push in the artificial intelligence (AI) memory space with its upcoming customizable high-bandwidth memory (HBM) chips, HBM4E. Following a record-breaking fiscal 2025, Micron plans to expand its high-performance memory portfolio through tailored HBM4E products designed to meet the needs of leading AI and data center customers.
The planned HBM4E line builds upon Micron’s HBM4 platform, offering increased bandwidth, power efficiency and flexibility. The company has partnered with Taiwan Semiconductor Manufacturing Company, aka TSMC, to manufacture customized base logic dies. Through this deal, Micron can offer versions of HBM4E optimized for specific customer applications, such as advanced graphics processing units and AI accelerators.
This strategy positions Micron to capture higher-margin opportunities and enhance customer loyalty in a rapidly growing market segment. Management has also noted that customized versions will likely deliver better margins than standard models, adding another layer of upside potential.
Micron’s HBM business already reached nearly $8 billion in annualized revenues in fiscal 2025, and the company expects strong demand to continue into fiscal 2026. With tight DRAM supply and rising AI-related memory needs, the new HBM4E products could lift both sales and profitability.
If Micron maintains its technology leadership and execution discipline, the HBM4E expansion could extend its revenue momentum and solidify its role as a critical supplier in the global AI memory race. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $53.27 billion, indicating year-over-year growth of 42.5%.
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Micron YTD Price Return Performance
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From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 11.4, significantly lower than the industry’s average of 22.81.
Micron Forward 12-Month P/E Ratio
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