HBM Supply Curve Gets Steeper, but Still Can't Meet Demand (www.nextplatform.com)

Micron Technology recently announced a significant increase in its forecasts for the Total Addressable Market (TAM) of High Bandwidth Memory (HBM), projecting revenues to reach $100 billion by 2028, up from previous estimates of 2030. This surge is largely driven by escalating demand for AI-related compute and memory, particularly in data centers as companies strive toward advancements in artificial general intelligence. CEO Sanjay Mehrotra highlighted that server unit demand is expected to grow in the high teens percentage range for 2025 and continue its momentum into 2026, reinforcing the need for high-performance memory solutions. To capitalize on this expanding market, Micron is bolstering its capital expenditures by $2 billion to $20 billion in fiscal 2026 and accelerating the setup of its manufacturing capabilities. With the first fab in Idaho expected to come online by mid-2027 and further expansions planned, Micron aims to meet the soaring demand for HBM and other memory types, which are increasingly essential for AI systems. The anticipated boom is not just a financial shift but signifies a pivotal moment in hardware development, as industry players adapt to the growing computational requirements of AI, potentially driving trillions in system revenues over the coming years.