Overview
- UBS and Piper Sandler each raised Micron’s price target to $400 this week, citing tighter HBM/DRAM supply and stronger earnings durability tied to AI demand.
- Micron’s HBM3 supply for the year is already committed, and HBM requires roughly three to four times the wafer capacity of standard DRAM, limiting broader memory availability and supporting higher prices.
- Micron reported Q1 revenue of $13.6 billion, up 56.7% year over year, and guided Q2 sales to $18.7 billion with expected EPS of $8.22 to $8.62.
- Management outlined a larger FY26 capital plan of about $20 billion to expand capacity, while industry checks note constrained clean-room space and more multiyear customer agreements.
- Sector sentiment improved after President Trump praised Intel, lifting chip stocks, as official SIA data showed global semiconductor sales rising 29.8% year over year to a record $75.3 billion in November.