Micron stock price target raised to $225 from $195 at UBS on HBM demand

Investing.com - UBS raised its price target on Micron Technology (NASDAQ:MU) to $225.00 from $195.00 while maintaining a Buy rating, citing stronger high-bandwidth memory (HBM) demand projections. The semiconductor giant, currently trading at $193.66 with a market cap of $217.48 billion, has seen its stock surge over 180% in the past six months. According to InvestingPro data, 24 analysts have recently revised their earnings estimates upward.

The firm increased its HBM industry demand forecast to 17.1 billion gigabytes for 2025 and 27.2 billion gigabytes for 2026, up from previous estimates of 16.9 billion and 26.1 billion gigabytes, respectively. UBS now projects HBM demand could grow approximately 35% year-over-year in 2027. This aligns with Micron’s impressive revenue growth of 48.85% over the last twelve months.

Two key factors drive the revised forecast: the inclusion of OAI with approximately 700,000 units featuring HBM3E 12-Hi starting in 2026, and higher NVIDIA Rubin unit volumes, which UBS increased by 400,000 to 7.4 million units.

UBS expects Micron to gain "modest share" beyond the second half of 2025, though this growth may be limited by capacity constraints, as significant wafer production from Micron’s new Idaho fabrication facility isn’t expected until the second half of 2027.

The firm reiterated its view that the current memory cycle will prove more durable as HBM crowds out the traditional memory market, with most industry capacity additions through 2027 directed toward HBM production, allowing suppliers to allocate memory to higher-value markets. With an overall financial health score rated as "GREAT" by InvestingPro, Micron appears well-positioned to capitalize on this trend. Get access to 12 more exclusive ProTips and comprehensive analysis in the Pro Research Report.

In other recent news, Micron Technology Inc. reported its fourth-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $3.03, exceeding the forecasted $2.77, representing a 9.39% surprise. Additionally, Micron’s revenue reached $11.32 billion, surpassing the anticipated $11.11 billion. These results highlight the company’s strong financial performance during the period. Despite the positive earnings and revenue figures, Micron’s stock experienced a decline in after-hours trading. The stock closed at $161.71, down from $164.62. Investors and analysts continue to monitor the company’s financial health and market performance closely.

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