ubs raises micron technology stock price target to $120 from $92

On Thursday, UBS analysts raised the price target for Micron Technology (NASDAQ:MU) stock to $120 from $92, maintaining a Buy rating. The adjustment follows a recent round of industry checks that suggest a more stable demand environment for DDR (NYSE:SITC) across various end-markets. This stability is attributed to factors beyond smartphones and PCs, including increased demand from hyperscalers for server DDR5. The stock has shown strong momentum, gaining 6.66% in the past week and 22.84% year-to-date. InvestingPro data reveals Micron’s robust financial health score of 2.7 (GOOD), with analysts projecting significant sales growth this year.

UBS analysts highlighted an improvement in DDR average selling price expectations, projecting a quarter-over-quarter increase of 7% in the second quarter and 3% in the third quarter. Despite maintaining NAND ASP assumptions, the analysts noted that supply discipline among suppliers could have a positive impact. With a market capitalization of $119.17 billion and a forecasted revenue growth of 41% for FY2025, Micron demonstrates strong market positioning. Get deeper insights into Micron’s growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.

The firm also adjusted its industry demand forecast for High Bandwidth (NASDAQ:BAND) Memory (HBM), citing a slower ramp-up of AI application-specific integrated circuits, such as Google (NASDAQ:GOOGL)’s TPU v6e/v7 and AWS’s Trainium 3. The revised forecast predicts industry demand of approximately 16.3 billion gigabits in 2025 and 25.4 billion gigabits in 2026.

Micron’s shipment of HBM3E 12-Hi to NVIDIA (NASDAQ:NVDA) is expected to occur in June, a shift from the previously anticipated April or May timeline. UBS analysts view the impact on Micron’s topline as limited but believe the stock has potential for growth if the market gains confidence in Micron’s earnings potential for 2026 and beyond.

In other recent news, Micron Technology has been at the center of several notable developments. Mizuho (NYSE:MFG) analysts have raised their price target for Micron to $130, maintaining an Outperform rating, based on an optimistic outlook for the company’s growth in the High Bandwidth Memory market. This follows the company’s announcement of its latest LPDDR5X memory, claimed to be the world’s thinnest, which aims to enhance AI performance in smartphones while offering significant power savings. JPMorgan has expressed confidence in Micron’s manufacturing progress and robust demand trends, particularly in datacenter applications, which continue to drive the need for high-bandwidth memory and solid-state drives. Meanwhile, Micron’s decision not to update its financial guidance at a recent conference has left some investors cautious, as they anticipated a more positive outlook. Industry analyst Ming-Chi Kuo predicts that Apple (NASDAQ:AAPL)’s iPhone 17 models will feature 12GB of DRAM, potentially benefiting suppliers like Micron due to higher average selling prices. These ongoing developments highlight Micron’s strategic focus on advanced technology and its positioning in the competitive semiconductor market.

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