Overview
- UBS lifted Micron’s price target to $400 after meetings with management, arguing AI demand is driving a structural re‑rating and greater EPS durability as faster HBM cycles discourage inventory builds.
- Piper Sandler raised its target to $400, saying 2026 supply is effectively sold out with limited capacity additions and highlighting value‑based pricing for HBM4 and roughly 20% more Micron supply planned for 2026.
- Micron’s HBM3 allotment is sold out for the year and the company has increased fiscal 2026 capital spending to about $20 billion to expand advanced DRAM and HBM capacity.
- Micron reported strong recent results and guided for Q2 revenue of $18.7 billion with EPS of $8.22–$8.62, supported by locked‑in HBM pricing and efficiency gains.
- Sector sentiment strengthened as SIA reported record monthly chip sales and projected near‑$1 trillion market sales in 2026, while a presidential endorsement of Intel coincided with gains for Intel, Broadcom and Micron.