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Investing.com - UBS has raised its price target on Micron Technology (NASDAQ:MU) to $185.00 from $155.00 while maintaining a Buy rating, citing robust demand and improving market fundamentals. The stock, trading near its 52-week high of $158.28, has delivered impressive returns with a 73% gain over the past year. According to InvestingPro data, 9 analysts have recently revised their earnings estimates upward, with price targets ranging from $95 to $200.
The firm’s industry checks support ongoing strength that will drive solid guidance for Micron’s fiscal first quarter of 2026. UBS notes demand from hyperscalers for server DDR5 memory remains very robust, with all major US customers seeking long-term agreements extending into calendar year 2026. This aligns with the company’s strong financial position, as revealed by InvestingPro analysis, showing a healthy current ratio of 2.75 and revenue growth of 58% in the last twelve months.
UBS models DDR memory average selling prices increasing 3% quarter-over-quarter in Q3 2025, 5% in Q4 2025, and 3% in Q1 2026. For NAND flash memory, the firm projects similar price increases of 3%/5%/3% across the same periods, partly driven by US hyperscalers pursuing long-term agreements into 2026 and increased demand for enterprise SSDs. With a gross profit margin of 37% and operating with moderate debt levels, Micron appears well-positioned to capitalize on these market dynamics. Get deeper insights into Micron’s financial health and growth potential with InvestingPro’s comprehensive research report, available along with 14 additional ProTips.
For high-bandwidth memory (HBM), UBS maintains its industry demand forecast of approximately 16.9 billion gigabits in calendar year 2025 and 26.1 billion gigabits in 2026. The firm believes Micron remains on track for HBM4 qualification by year-end and volume shipments in 2026, despite some elongation in qualification timelines.
UBS states that HBM is "crowding out" the traditional memory market, creating supply constraints and allowing Micron to allocate bits to higher-value markets, a dynamic expected to intensify in calendar year 2026 until new manufacturing capacity comes online.
In other recent news, Micron Technology has been the focus of several analyst assessments and market developments. Stifel has issued a positive outlook for Micron, highlighting potential growth in the data center market driven by improving hyperscaler forecasts within the semiconductor industry. Meanwhile, Goldman Sachs has maintained a Neutral rating on Micron, with a price target of $130, as the company continues to ramp up its high-bandwidth memory (HBM) production. CLSA initiated coverage on Micron with an Outperform rating and a $155 price target, citing strong demand for HBM from artificial intelligence customers. Cantor Fitzgerald reiterated an Overweight rating with a $155 price target, despite acknowledging potential market share impacts from competitors like Samsung in the HBM segment. Additionally, new export regulations have led to a rally in the computer hardware and storage sector, including a 3% increase for Micron, as market participants consider the implications for memory chip production in China. These developments indicate a range of perspectives on Micron’s strategic positioning and future prospects.
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