Wolfe Research Affirms Outperform on Micron, $160 Price Target

Wolfe Research analyst Chris Caso reiterated an Outperform rating and $160 price target on Micron Technology (NASDAQ: MU).

“Reiterate Outperform rating and $160 price target. Our $160 price target is based on ~11x our CY26 EPS of $14.32. We see three factors influencing MU’s stock performance going forward.

The first is the sustainability of current pricing strength amid fears of pull forwards. Given the positive preannouncement, so far, so good.

The second is market share assuming Samsung qualifies on HBM4 for next year. We think it’s much more likely that Hynix donates share rather than MU if Samsung enters the market.

The third is CY26 HBM margins. The potential for Samsung to participate in leading edge HBM has driven pricing and margin concerns.

We do think it’s a reasonable assumption for HBM margins to decline as Samsung qualifies.

But we expect HBM4 GM to be ahead of MU’s corporate average.

The more significant intermediate-term catalyst for DRAM is the HBM content increase for Rubin Ultra in CY27 (4x content/ chip and 2x content/GPU).

Because Samsung has yet to qualify, we don’t think the industry capacity is in place to fulfill that demand yet.

That’s the factor that keeps us structurally positive, with the aforementioned factors providing trading opportunities in the meantime.”

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