Micron Technology (MU) PT Raised to $185 at UBS

UBS analyst Timothy Arcuri raised the price target on Micron Technology (NASDAQ: MU) to $185.00 (from $155.00) while maintaining a Buy rating.

The analyst comments "Having already positively pre-announced, we feel that our latest round of industry checks supports ongoing strength that will drive solid guidance for FQ1:26 (Nov). To this end, we flag demand from hyperscalers for server DDR5 remaining very robust, with all major US customers now seeking LTAs into C2026. Net, we continue to model industry DDR ASPs at +3%/+5%/+3% Q/Q in 3Q25/4Q25/1Q26. In NAND, it appears US hyperscalers are also pursuing LTAs into 2026 - in some cases structured as bundled DDR5/SSD contracts. Here, much of the incremental demand appears to be focused on eSSDs, in part driven by HDD market tightness. As a result, we model NAND industry ASPs at +3%/+5%/+3% Q/Q in 3Q25/4Q25/1Q26. For HBM, we maintain our industry demand forecast of ~16.9B Gb in CY25 and 26.1B Gb in CY26 even as HBM4 qualification timelines have been elongated somewhat because NVDA increased pin speed/bandwidth requirements to 10Gbps (from 8Gbps). As it relates to MU, this might require some rework of its internal logic base die, but we continue to believe the company remains on track for qualification by year-end and volume shipments in 2026. All things considered, investor interest on MU remains surprisingly muted despite improving fundaments and our thesis over the past 12mos remaining intact - that HBM "crowds out" the traditional memory market creating supply constraints and allowing MU to allocate bits to higher value markets. This dynamic should only intensify in C2026 until new shell capacity comes online, supporting more durability/stability of the cycle and allowing MU to move margins higher. Ergo, on higher estimates and refreshed valuation multiples, we raise our PT to $185 and reiterate our Buy rating."

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