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HSBC Raises Micron (MU) Price Target, William Blair Initiates With Outperform Rating

Micron Technology, Inc. (NASDAQ:MU) is one of the 11 Most Profitable Cheap Stocks to Invest In Now. On January 23, HSBC increased its price target on Micron Technology, Inc. (NASDAQ:MU) from $350 to $500 and kept its Buy rating. The firm noted that the sharp rise in DRAM prices was a major reason behind the strong gains in the share price over the past three months.

HSBC now expects Micron Technology, Inc. (NASDAQ:MU) to report Q2 fiscal 2026 operating profit of $12 billion, which would be an increase of 88% quarter-over-quarter. The research firm forecasts sales of $20 billion, up 47% compared to the previous quarter. HSBC forecasts DRAM blended average selling prices to see a 45% increase quarter-over-quarter, up from its earlier forecast of 37%.

Earlier, on January 22, William Blair initiated coverage of Micron Technology, Inc. (NASDAQ:MU) with an Outperform rating. The firm believes that the company is in a strong position to see sharp profit growth as rising AI-driven demand meets ongoing supply constraints that could continue into 2027.

William Blair expects a multi-year upcycle in the memory market to support higher pricing and margins, primarily by high-bandwidth memory (HBM) used in AI accelerators. The firm noted that memory has become a bottleneck in AI systems, which is making customers shift toward higher-performance products that come with higher selling prices. William Blair forecasts Micron Technology, Inc.’s (NASDAQ:MU) non-GAAP EPS to grow by over 275% over the next two years.

Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor technology company that is known for its innovative memory and storage solutions. The company offers a portfolio of high-performance DRAM, NAND, and NOR memory and storage products.

While we acknowledge the potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MU and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best 5G Stocks to Invest In According to Hedge Funds and 12 Best American Energy Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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