Overview
- UBS’s Timothy Arcuri raised Micron’s target to $400 after sessions with the CEO, CFO and IR, arguing AI has made DRAM a strategic asset and improved EPS durability.
- UBS boosted its EPS estimates to about $45 for 2026 and about $60 for 2027, citing quicker HBM obsolescence that discourages inventory builds and tempers classic memory cyclicality.
- Micron reported Q1 revenue of roughly $13.6 billion and guided Q2 sales to about $18.7 billion with EPS of $8.22 to $8.62, supported by locked-in HBM pricing and efficiency gains.
- The company raised its fiscal 2026 capital spending plan to $20 billion from $18 billion to expand advanced-node and high-bandwidth memory capacity.
- Micron shares have climbed about 236% over the past year, with recent commentary pointing to strong HBM orders for NVIDIA’s AI GPUs as a key demand driver.