UBS raised Micron’s target price from $400 to $450 while keeping its Buy rating, citing strengthening pricing momentum across both DRAM and NAND. The firm forecasts that industry contract prices for DDR memory in the first quarter of 2026 will rise about 62% quarter on quarter, slightly above its previous estimate, while NAND prices are expected to increase about 40% quarter on quarter, higher than the prior forecast of 27%.

UBS believes the memory supply shortage will persist more deeply into 2027 than previously expected. Although PC and smartphone demand may soften somewhat due to higher prices, DRAM could remain undersupplied through the fourth quarter of 2027, while NAND may stay tight through the first quarter of 2027.

Memory industry revenue (DRAM + NAND) is expected to reach about $566 billion in 2026 and $788 billion in 2027, potentially surpassing the entire semiconductor industry’s revenue in 2024.

UBS raised its estimate for Micron’s earnings per share to about $54 for 2026 and $75 for 2027. It also noted that at current prices, Micron trades at only about five times earnings, while hard disk drive stocks trade at more than doublethat multiple.

Micron is preparing to announce an investment to expand memory chip manufacturing capacity in Singapore, with a focus on NAND flash production. This move comes as multiple rating agencies have raised their target prices for the company, reflecting increasingly positive expectations.

Mizuho emphasized that rising price trends in the DRAM and NAND markets could lift Micron’s growth and margins into 2026. HSBC also raised its target price to $500, attributing the move to the rapid rise in DRAM prices and noting that worsening supply shortages in the memory market are a key driver.

Market Interpretation:

Stifel adjusted its target price to $360, noting that growth in AI cloud infrastructure has absorbed DRAM output, creating a shortage in the market. These developments indicate that the market is highly focused on Micron’s potential to capitalize on current conditions.