Overview
- UBS raised Micron’s price target to $400 from $300 and boosted EPS estimates to $45 for 2026 and $60 for 2027 after meetings with company leadership.
- Management indicated it can currently fulfill only about 50% to 75% of orders from its largest customers, reflecting constrained supply and stronger pricing power.
- Shares climbed roughly 10% on Tuesday and about 17% over five days as investors recalibrated expectations for AI-related memory demand.
- Industry checks point to pervasive tightness, with SK Hynix saying its 2026 output is sold out, Samsung hiking some memory prices up to 60% since September, and DRAM prices projected to rise further into mid-2026.
- Micron plans to break ground this month on a New York megafab to expand U.S. capacity, positioning for sustained AI data-center demand.