UBS Reiterates Buy on Micron, $125 Price Target

UBS analyst Timothy Arcuri reiterated a Buy rating and $125 price target on Micron Technology (NASDAQ: MU).

“We adjust our Micron model on the back of our latest round of industry checks on pricing.

We further trim our pricing assumptions for CY25 due to near-term inventory digestion stretching for a bit longer than previously expected, though we expect a return to modest DRAM undersupply by 4Q25 and through C2026.

That said, we remain bullish on MU’s HBM roadmap – especially for HBM3E 12-Hi at NVDA given competitor qualification delays – and Micron was incrementally positive on its HBM progress/ opportunity at CES.

While we have just cut NAND pricing expectations, most companies (excluding YMTC) are showing supply discipline – MU, SK, and Kioxia are already cutting production, while we think Samsung cuts are imminent; in all we expect a more balanced supply/demand environment by 4Q25.

Admittedly, while it is a bit hard to see an immediate catalyst, we see no change in the big picture story here – MU has established technology leadership and the HBM ramp is siphoning wafers away from traditional PC/smartphone memory markets meaning that the market is going to get very tight once again if we see any sort of traditional server refresh or AI PC cycle.

Ergo, we maintain our $125 PT and Buy rating.”

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