Micron (MU) PT Lifted to $275 as UBS Highlights Tight Memory Supply

According to the firm, Micron is present afloat booked connected High Bandwidth Memory (HBM) proviso done the extremity of 2026. This is simply a reflection of choky marketplace conditions, which besides align with UBS’s caller manufacture checks.

“As it is astir to spell into quiescent period, MU offered incremental colour connected the presumption of its concern with commentary that was precise overmuch accordant with our latest circular of manufacture checks — but did not positively pre-announce FQ1 (Nov). MU’s presumption connected the duration of proviso tightness has extended versus 3 months agone (now done CYE2026) and it is present afloat booked retired connected HBM proviso done CYE2026. "

"On the backmost of specified choky proviso conditions and accordant with our caller manufacture checks, we spot profitability successful halfway DRAM strengthening adjacent further — starring to DDR gross borderline to surpass HBM for the archetypal clip successful aboriginal C2026 adjacent arsenic MU faces (we think) a somewhat shallower ramp successful HBM gross versus the past fewer Qs due to the fact that of capableness limitations.”

While Micron didn’t pre-announce results, the steadfast believes that it is performing amended than guidance, supported by DDR5 declaration negotiations reaching 20% quarter-over-quarter increases oregon higher, portion immoderate mobile DRAM deals witnessing terms increases of astir 40% quarter-over-quarter.

“All things considered, we reiterate our long-held presumption that the rhythm volition beryllium much durable this clip arsenic HBM ‘crowds out’ the accepted representation marketplace arsenic most, if not all, of the capableness additions crossed the manufacture done C2027 volition apt spell to HBM.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells representation and retention products for information centers, mobile devices, and assorted industries worldwide.

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