Micron price target raised to $150 from $130 at Mizuho on HBM growth

Investing.com - Mizuho (NYSE:MFG) raised its price target on Micron Technology (NASDAQ:MU) stock to $150 from $130 on Thursday, maintaining an Outperform rating following the company’s strong quarterly results and guidance. The semiconductor giant, currently trading at $127.25 with a market cap of $142 billion, has shown remarkable momentum with a 42% surge over the past six months. According to InvestingPro analysis, the stock’s RSI indicates overbought territory, suggesting investors should monitor entry points carefully.

Micron reported May quarter revenue of $9.30 billion with earnings per share of $1.91, while guiding to August quarter revenue of $10.7 billion, significantly above consensus estimates of $9.89 billion. The company continues to see strength in DRAM and expanding gross margins. InvestingPro data reveals impressive revenue growth of 71% over the last twelve months, with a healthy gross profit margin of 34.7%. Get access to 12+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

The memory chipmaker reported High Bandwidth (NASDAQ:BAND) Memory (HBM) shipments increased 50% quarter-over-quarter, with LPDDR5 tailwinds in data center as the sole supplier to GB200/300. Micron now expects its HBM market share to reach 20-25% in the second half of 2025, earlier than its previous year-end 2025 target.

Mizuho highlighted Micron’s 2026 HBM revenue ramp with HBM4 driving higher bits and average selling prices, estimating this segment could grow 34% to approximately $17 billion or more. The firm sees improved pricing and bit shipments leading to a strong second half of 2025.

Micron also increased its planned U.S. investment to $200 billion from the previously announced $170 billion. The new price target represents approximately 2.4 times Mizuho’s fiscal 2026 price-to-book estimate, up from the previous 2.1 times multiple. InvestingPro analysis shows the company maintains a strong financial health score of 2.8 out of 5, operating with moderate debt levels and ample liquidity. Discover detailed insights and access the comprehensive Pro Research Report, available for Micron and 1,400+ other top US stocks.

In other recent news, Micron Technology has captured attention with its latest financial developments and analyst evaluations. The company reported fiscal third-quarter results that exceeded expectations, driven by strong pricing and shipments across its product lines, particularly in NAND flash memory. UBS, Wells Fargo (NYSE:WFC), Wolfe Research, Citi, and Stifel have all raised their price targets on Micron, citing factors such as High Bandwidth Memory (HBM) growth and a strong outlook for the semiconductor industry. UBS increased its target to $155, while Wells Fargo set a new target of $170, highlighting Micron’s HBM revenue growth and expanded customer base. Wolfe Research raised its target to $160, noting expectations for a cyclical recovery in the semiconductor industry. Citi and Stifel also raised their targets to $150 and $145, respectively, following Micron’s better-than-expected earnings and guidance. Analysts have maintained positive ratings on the stock, with firms like Citi and Stifel emphasizing the company’s favorable product mix and strong outlook. Micron’s strategic positioning in data centers and high-performance computing systems continues to bolster its financial performance.

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