UBS Reiterates Buy on Micron, $275 Price Target

UBS analyst Timothy Arcuri reiterated a Buy rating and $275 price target on Micron Technology (NASDAQ: MU).

“We continue to see a favorable setup for MU into the print and leave our estimates unchanged from prior in-quarter updates – which remain well ahead of MU’s NovQ guidance and Street.

Despite some surprise among investors that MU did not positively pre-announce F1Q (Nov), our conversations with management ahead of quiet period indicate that: 1) MU is trying to move away from explicit pre-announcements, and 2) management statements at its last conference appearance that supply tightness intensified and extended versus 3mos ago (now through CYE2026) effectively imply that the Q tracked above guidance.

Against this backdrop of tightening supply, we see DDR gross margin surpassing 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.

All things considered, we reiterate our long-held view that this cycle will prove structurally more durable 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.

On unchanged estimates, our PT stays at $275 and we maintain our Buy rating.”

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