Micron is heading toward one of the most profitable semiconductor runs in history. UBS projects its revenue could reach nearly $379 billion by fiscal 2028, with profits approaching an unbelievable $286 billion. That is an extremely bullish forecast, but it shows how powerful UBS believes the AI memory cycle could become. The bank also estimates that Micron’s earnings per share could reach approximately $265.65 by 2028, compared with $74.13 in fiscal 2026. The bull case begins with high bandwidth memory or HBM. HBM is critical because AI accelerators need to move enormous amounts of data quickly and without enough high performance memory, expensive AI processors can sit idle while waiting for data. Micron has said that AI demand is growing faster than the industry can add supply and the company expects HBM demand to remain tight through 2027 and potentially beyond. UBS estimates that the HBM market could reach approximately $100 billion by 2028, far above its previous expectations and it also forecasts that industry HBM prices could rise about 79% in 2027, while HBM4E pricing could exceed $30 per gigabyte. The shortage is important because producing HBM requires significantly more manufacturing capacity than traditional memory and that producing 100 bits of HBM can require sacrificing approximately 300 bits of conventional DDR memory. That trade off limits supply across the broader DRAM market and gives Micron more pricing power. Micron has also indicated that its 2026 HBM supply is fully committed. Strong customer demand and multiyear agreements could provide greater revenue visibility than in previous memory cycles. The bull case is not limited to HBM because AI data centers also require more server DRAM and storage because each server is handling larger models, longer context windows and more continuous workloads. Micron expects data center memory and storage demand to become more than half of the industry’s total market in 2026 and as AI usage continues growing rapidly, customers may be willing to pay higher prices to secure memory supply. That would allow Micron to benefit from both higher shipment volumes and stronger average selling prices. If you enjoyed reading this, make sure to follow @MelvinInvests for more memory and semiconductor insights and turn on post notifications so you don't miss a single update. If you want to see exactly what I'm buying as an analyst at Milk Road Pro, check out this link.