UBS Raises Micron Price Target to $155

UBS analyst Timothy Arcuri raised the price target on Micron Technology (NASDAQ: MU) to $155 (from $120) while maintaining a Buy rating.

“MU delivered against the only real investor expectations we heard into the call – HBM revenue and gross margin, both of which were in-line to a little better than bogeys.

Pull- ins may be helping boost non-AI demand somewhat (particularly on the NAND side), but we think investors are too concerned about this because HBM is finally becoming a big enough part of the DRAM business (~6-7% of DRAM bits but ~19-20% of allocated capacity based on our estimates) that it is “crowding out” the traditional memory market and creating supply constraints for MU.

This should allow the company to allocate these constrained bits to higher value markets and this dynamic is only going to intensify in C2026 until MU (and peers) has new shell capacity to add wafers.

Even then, we suspect MU and peers will add very carefully and strategically.

Essentially, this is the thesis we have been laying out over the past 12mos – that HBM will create more durability and stability and allow MU to keep moving margins higher.

Because of this, we think there is an argument to value the HBM revenue/EPS at a higher multiple – especially once MU starts breaking out margins by product segment next Q.

We are moving to this approach (looking to other stocks in our coverage to asses the right HBM multiple – Figure 14MU HBultipe Valution) – the net of which is an increase in price target to $155 on slightly, but not dramatically, higher estimates (ex.

C2026 EPS from ~$13 to ~$14).”

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