UBS Raises Price Target on Micron (MU), Keeps Buy Rating

Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 5, UBS analysts increased the price target for Micron Technology, Inc. (NASDAQ:MU) from $92 to $120 and kept a “Buy” rating. This decision came after a round of industry checks that showed a more stable demand environment for DDR across various end markets. This stability is supported by not only smartphones and PCs, but also by increased demand for server DDR5 from hyperscalers.

UBS analysts expect the average selling price of DDR to increase by 7% in the second quarter and by 3% in the third quarter. The analysts did not change the price expectations for NAND, but they pointed out that if suppliers keep their supply disciplined, it could have a positive impact.

A close-up view of a computer motherboard with integrated semiconductor chips.

Additionally, UBS adjusted its forecast for High Bandwidth Memory (HBM) demand while noting that the ramp-up of AI chips like Google’s TPU v6e/v7 and AWS’s Trainium 3 is slower than expected. UBS analysts expect industry demand of about 16.3 billion gigabits of HBM in 2025 and 25.4 billion gigabits in 2026.

Micron Technology, Inc. (NASDAQ:MU) is expected to ship its HBM3E 12-Hi to NVIDIA in June, which is later than the previously expected time of April or May. UBS analysts believe this delay will only have a limited impact on the company’s topline. However, they think Micron Technology, Inc. (NASDAQ:MU) could grow if the market becomes more confident in the company’s earnings potential for 2026 and later.

Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor technology company that is known for its innovative memory and storage solutions.

While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds.

Disclosure: None.