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Investing.com - UBS raised its price target on Micron Technology (NASDAQ:MU) to $245.00 from $225.00 on Thursday, while maintaining a Buy rating on the semiconductor stock. The stock, currently trading at $197.65, has delivered an impressive 177% return over the past six months. According to InvestingPro data, Micron’s stock is currently fairly valued, with analyst targets ranging from $107 to $270.
The price target increase follows UBS’s latest industry checks, which indicate a "very robust demand environment being met by acute and worsening DRAM supply shortages." The firm now projects Micron’s calendar 2026 earnings per share power approaching $30. This optimistic outlook aligns with InvestingPro’s analysis, which shows Micron’s robust financial health with an overall score of 3.21 (GREAT) and strong revenue growth of 49% over the last twelve months.
UBS noted an additional uptick in legacy DDR demand projections from US hyperscalers, with DDR bit demand expected to double year-over-year in calendar 2026. Smartphone customers are also requesting more DRAM supply amid limited new DDR production, as most new DRAM bits are being allocated to HBM (High Bandwidth Memory).
The supply constraints are prompting hyperscalers to pursue long-term agreements covering both calendar 2026 and 2027, which in some cases bundle DDR5 with NAND/SSD products, according to UBS.
In the NAND market, UBS observed that tightness appears most pronounced in enterprise SSDs, with several NAND producers recently placing new equipment orders aimed at increasing layer counts despite industry questions about demand sustainability.
In other recent news, Micron Technology reported its fourth-quarter 2025 earnings, exceeding analysts’ expectations. The company achieved an earnings per share of $3.03, surpassing the forecasted $2.77, and generated revenue of $11.32 billion, beating the anticipated $11.11 billion. Despite these robust financial results, the stock saw a decline in after-hours trading. Meanwhile, UBS raised its price target for Micron Technology from $195 to $225, maintaining a Buy rating. This adjustment was based on stronger projections for high-bandwidth memory (HBM) demand. UBS now forecasts HBM industry demand to reach 17.1 billion gigabytes in 2025 and 27.2 billion gigabytes in 2026, with an expected growth of approximately 35% year-over-year in 2027. These developments reflect recent trends and projections for Micron Technology.
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