William Blair has upgraded Micron to Outperform, citing a surge in AI memory demand that clashes with a tight supply chain. The analyst projects a sharp profit lift as high‑bandwidth memory (HBM) prices climb, positioning Micron to capture a growing share of the AI chip market in 2026.

Micron’s non‑GAAP earnings per share are expected to surge more than 275% over the next two years, driven by a projected 164% jump in HBM revenue in fiscal 2026 and another 40% in 2027. The company’s DRAM segment, which generated 77% of 2025 revenue, will also benefit from higher‑tier products.

Supply constraints persist as Micron reallocates capacity toward HBM, leaving non‑HBM DRAM scarce. William Blair estimates the AI buildout could add roughly $100 billion to the memory market by 2028, with HBM products commanding four to five times the price of traditional DRAM, boosting margins for investors and analysts.

Risks include Samsung’s competitive pressure, a $20 billion capital spend in fiscal 2026, and a potential easing of the supply‑demand gap. Despite these headwinds, William Blair views Micron’s valuation as reasonable and expects shares to climb through an AI‑driven product cycle for long‑term growth and shareholder returns.