Barclays Raises Micron Price Target to $275

Barclays analyst Tom O’Malley raised the price target on Micron Technology (NASDAQ: MU) to $275 (from $240) while maintaining an Overweight rating.

“This is the breakout quarter that many have expected given recent price dynamics in memory, but perhaps not to this magnitude.

Highlights from the call include a material uptick in HBM (mgmt forecasted an HBM TAM CAGR of approximately 40% through CY28 to $100B) and GM guidance to 68%, with the view of continued improvement over the next few quarters.

This suggests the pricing environment will continue to improve from here backed by LTAs.

Net capex guided to $20B and the company is working to bring on supply as construction capex will double over the next FY, with the closest mentioned facility being Fab 1 in Idaho (wafers not until 1H CY27).

Management expects supply tightness to persist through CY26 and beyond.

The one trade-off is that tightness will negatively impact the consumer end market (and potentially others) with management calling out PCs in particular.

No additional comments on the competitive dynamic, although the company reiterated their technology platform and the debate will center from here on how structurally sound LTAs are if more supply comes online.

Memory scales nonlinearly (more positive) as accelerators ramp and this name remains tied to the expanding AI footprint.

The negative catalyst would be a material competitive change, which we have no evidence of now.”

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