UBS Raises Micron (MU) Price Target to $400, Citing AI-Driven Re-Rating

Micron Technology, Inc. (NASDAQ:MU) is one of the AI Stocks Analysts Are Watching Closely. On January 7, UBS analyst Timothy Arcuri raised the price target on the stock to $400.00 (from $300.00) while maintaining a “Buy” rating. The firm sees Micron as structurally revalued driven by AI demand and improved EPS durability.

UBS’s price target hike follows a series of investors meetings and dinners with Micron’s management, involving key personnel such as the CEO, CFO, and Investor Relations. These bullish meetings have shed a positive outlook on the durability of the current memory cycle.

The firm believes that investors are still underestimating the degree to which artificial intelligence has made memory, particularly DRAM, a strategic asset. They have also been failing to fully appreciate EPS durability, partly because each generation of High Bandwidth Memory (HBM) becomes obsolete faster than traditional DRAM historically did.

Analysts noted how this is now a “dis-incentive” for customers to build inventory and reduces the severe cyclicality that has characterized the memory market.

“We believe this may argue for a re-rating of the stock and new ranges for key metrics like P/TBV. Net, we raise C2026E EPS from ~$41 to ~$45 and C2027E from $42 to ~$60. We raise PT to $400 (from $300) and maintain our Buy rating.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.

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