Wells Fargo analyst Aaron Rakers reiterated an Overweight rating and $175.00 price target on Micron Technology (NASDAQ: MU)

The analyst comments "We're positive on MU setup into upcoming (12/18) F1Q25 print. Expect solid MU HBM share gains (note prepays) + solutions portfolio execution; reaffirmation of disciplined industry dynamics to drive 'substantial' MU rev record in FY25. HBM3E Ramp / Competition = Key Focus: MU's participation / share ramp in HBM remains the primary investor focus. We expect increasing confidence in MU's drive toward a ~20%+ HBM share in CY25 w/ HBM TAM est at $25B+ (~6% of industry bit demand); multiple-billions of rev, although upside could be limited given MU's supply is sold out for CY25 (fixed volume + pricing LTAs). MU disclosed customer prepays at $907M exiting F4Q24 ($766M in current liabilities) vs $600M & $756M exiting F2Q24 and F3Q24. Deepening HBM customer engagements (i.e., customization, multi-year roadmaps, etc.) and expanding HBM vs DDR5 trade ratio as we move to 12-Hi HBM3E (early CY25 ramp) & HBM4 impact will also become a focus. Note that the HBM / D5 trade ratio stands at ~3:1 today, further HBM growth + ratio expansion likely to keep DDR5 supply tight. Investors continue to question Samsung's seemingly persisting HBM3E qual challenges; potential supply disruptor when / if NVIDIA qual were to materialize. Other DRAM: Aside from HBM, we see MU's broadening DRAM solutions portfolio as underappreciated. This includes: 1. LPDDR5: MU noted that LP5 will be a very significant product category; MU well-positioned for NVDA GB200 ramp w/ 384GB HBM3E + 480GB LPDDR5X in per GB200 superchips. 2. HIgh-Cap Server R-DIMMs: MU has highlighted its 128GB (32Gb/die) DDR5-8000 R-DIMMs for AI and traditional next-gen server upgrades."

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Shares of Micron Technology closed at $98.10 yesterday.