Baird raises Micron price target to $200 on HBM growth outlook

Published 26/06/2025, 13:14
© Reuters

Investing.com - Baird raised its price target on Micron Technology (NASDAQ:MU) stock to $200 from $163 on Thursday while maintaining an Outperform rating, citing accelerated high-bandwidth memory (HBM) market share gains. The semiconductor giant, currently valued at $142 billion, has seen its stock surge over 42% in the past six months, according to InvestingPro data.

The research firm noted Micron now expects to reach its HBM market share target in the second half of 2025, ahead of previous expectations. Micron is currently shipping HBM in high volume to four customers across both graphics processing units (GPUs) and application-specific integrated circuits (ASICs).

Baird highlighted that customer inventories remain healthy across all end markets, with tariff-related pull-ins described as modest so far. The memory chipmaker expects to exit fiscal 2025 with tight DRAM inventories, significantly reduced NAND inventories, and overall inventories approaching targeted levels.

The firm characterized Micron’s execution and growth outlook in both HBM and low-power DRAM as "transformational" for the company. These segments represent key growth drivers as demand for memory solutions in artificial intelligence applications continues to expand.

Micron remains a "top idea" at Baird, with the firm expressing confidence in the company’s strategic positioning in high-growth memory segments that support data center and AI infrastructure development.

In other recent news, Micron Technology has reported notable developments that have caught the attention of several analyst firms. The company’s strong quarterly results and guidance have led Rosenblatt to raise its price target to $200, citing Micron’s revenue, gross margin, operating margins, and profits exceeding Wall Street expectations due to high demand for DRAM products driven by artificial intelligence applications. Cantor Fitzgerald also increased its price target to $155, highlighting Micron’s August quarter guidance with projected revenues of $10.7 billion and earnings per share of $2.50, both above consensus estimates. Mizuho (NYSE:MFG) raised its target to $150, noting a significant increase in High Bandwidth (NASDAQ:BAND) Memory (HBM) shipments and projecting HBM market share to reach 20-25% in the second half of 2025. UBS set its target at $155, emphasizing the growing importance of HBM in Micron’s DRAM business and its strategic capacity allocation. Wells Fargo (NYSE:WFC) increased its price target to $170, driven by Micron’s strong HBM performance, with fiscal third-quarter HBM revenue growing approximately 50% quarter-over-quarter. These recent developments reflect Micron’s expanding role in the memory chip market and its strategic positioning in the AI and HBM sectors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.