TLDR
- UBS raises Micron stock price target to $400 from $300 on AI memory demand surge
- Supply constraints limit Micron to meeting only 50-75% of customer orders
- EPS estimates jump to $45 for 2026 and $60 for 2027 as AI transforms DRAM market
- Micron stock up 237% in 12 months on strategic shift from commodity to premium product
- Multiple analysts upgrade targets as memory pricing power strengthens across industry
UBS analyst Timothy Arcuri increased his Micron stock price target to $400 from $300 while maintaining a Buy rating. The upgrade follows meetings with Micron management about AI-driven memory demand.
The new $400 target represents 16% upside from Tuesday’s close. Arcuri raised 2026 EPS estimates to $45 from $41 and 2027 estimates to $60 from $42.
Micron stock has gained 237% over the past 12 months. The rally outpaces most large-cap technology stocks as AI demand reshapes the memory chip market.
Micron Stock Benefits From Severe Supply Shortage
Micron can currently fulfill only 50% to 75% of orders from its largest customers. UBS says this supply crunch is creating sustained pricing power.
AI servers require far more DRAM than traditional data centers. Customers no longer view memory as a low-cost commodity but as a strategic component.
“We still believe investors are underappreciating the degree to which AI has fundamentally made memory, DRAM in particular, a more strategic asset,” Arcuri wrote.
High Bandwidth Memory generations become obsolete faster than traditional DRAM. This discourages inventory building and could reduce the cyclical price swings that historically defined the sector.
Memory Chip Makers Capture Premium Pricing
Memory suppliers now earn premiums for performance rather than competing solely on price. Arcuri points to Nvidia’s Blackwell platforms as driving this shift.
“Suppliers are now getting paid for best-in-class performance as memory has become a key differentiator within hardware systems,” the analyst wrote.
UBS believes markets haven’t fully priced DRAM content growth in AI servers. Micron told analysts DRAM offers better customization and quality versus NAND.
Multiple firms have upgraded Micron stock recently. Piper Sandler set a $275 target after guidance beat estimates by 30% on revenue and 75% on EPS.
Bernstein raised its target to $330 on expected DRAM price increases. Needham maintained a $300 Buy rating citing strong demand for both DRAM and NAND.
Micron recently reported results exceeding guidance. The company forecast 132% year-over-year growth for the next quarter as AI demand accelerates memory chip sales.
The post Micron (MU) Stock Price Target Raised to $400 by UBS on AI Demand appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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