JPMorgan Raises Micron Price Target to $185

JPMorgan analyst Harlan Sur raised the price target on Micron Technology (NASDAQ: MU) to $185 (from $165) while maintaining an Overweight rating.

“Earlier this morning, Micron positively preannounced its Aug-quarter results, with upside in revenues, gross margins, and EPS.

The team is benefiting from an improved pricing environment, especially in DRAM across multiple markets including AI/datacenter, smartphone, and PC.

Bit shipment trends have been consistent with previous expectations and should quell fears that the upside is driven by tariff-driven pull forward.

In addition to strong DDR5 spot pricing improvements in the 1H of this year translating to better contract pricing in the 2H, the HBM trade ratio is creating a supply squeeze (and better pricing) for the non-AI portion of the market, where demand remains steady, and the team is seeing upside pricing pressure in its DDR5 and LPDDR5 products.

DDR4 products are going through end-of-life (EOL), driving some shortages in the market, but that is only a LSD% of revenue and is a very small part of the upside driver.

Moreover, HBM demand trends remain robust with strong visibility and AI capex spending through CY26.

Based on their progress with customers over the course of the past few months, the team is confident they will be able to sell out their HBM supply for calendar year 2026 (CY26) for HBM, which includes HBM3e, mostly 12-Hi, and HBM4.

Near-term execution has been stellar with the HBM3e 12-Hi yield ramp faster than the 8-Hi ramp and has already achieved crossover in volume.

Further out, the team is deeply engaged with their customers and has solid visibility into the HBM roadmaps.

The team has strong momentum in its product portfolio and has strong share or strong share gain opportunities in high-margin businesses.

Overall, the team believes they are well positioned for FY26 and CY26.

With solid cost execution and improving supply/demand fundamentals, we anticipate continued improvement in gross margin (GM) and earnings power in 2025 and into 2026.

We are increasing our estimates and increasing our PT from $165 to $185. We maintain our OW rating.”

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