UBS Raises Micron Price Target to $275

UBS analyst Timothy Arcuri raised the price target on Micron Technology (NASDAQ: MU) to $275 (from $245) while maintaining a Buy rating.

“As it is about to go into quiet period, MU offered incremental color on the status of its business with commentary that was very much consistent with our latest round of industry checks – but did not positively pre‑announce FQ1 (Nov).

MU’s view on the duration of supply tightness has extended versus 3mos ago (now through CYE2026) and it is now fully booked out on HBM supply through CYE2026.

On the back of such tight supply conditions and consistent w/our recent industry checks, we see profitability in core DRAM strengthening even further – leading to DDR gross margin to surpass HBM for the first time in early C2026 even as MU faces (we think) a slightly shallower ramp in HBM revenue versus the past few Qs because of capacity limitations.

Despite the lack of a pre‑announcement, we believe MU is likely tracking above the high‑end of guidance given DDR5 contract negotiations now edging towards +20% Q/Q (or higher) and in some instances deals for mobile DRAM coming with ASP up nearly 40% Q/Q.

All things considered, we reiterate our long‑held view that the cycle will be more durable this time as HBM “crowds out” the traditional memory market as most, if not all, of the capacity addition across the industry through C2027 will likely go to HBM.”

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