Micron Technology Receives Price Target Boost Amid Rising HBM Demand

BOISE, Idaho – Micron Technology, Inc. (NASDAQ: MU) saw its stock price target raised to $225.00 by UBS analyst Timothy Arcuri on October 8, up from $195.00. UBS maintained a Buy rating, citing stronger projections for high-bandwidth memory (HBM) demand as the driving factor.

UBS now forecasts HBM industry demand to reach 17.1 billion gigabytes in 2025 and 27.2 billion gigabytes in 2026, up from previous estimates of 16.9 billion and 26.1 billion gigabytes. The firm anticipates a significant year-over-year growth of approximately 35% in HBM demand by 2027.

“Our confidence in HBM demand expansion has increased due to recent announcements in the compute space and our latest supply checks,” said Arcuri. He highlighted the upcoming inclusion of OAI, which is expected to add about 700,000 units with HBM3E 12-Hi starting in 2026, along with higher unit volumes from NVDA, which is projected to rise from 7.0 million to 7.4 million next year.

The demand for HBM is also expected to outshine the traditional memory market. “Most, if not all, of the capacity addition across the industry through 2027 will go to HBM,” Arcuri noted. “This leaves suppliers positioned to allocate bits to higher value markets.”

Micron Technology specializes in developing and selling memory and storage products for various applications, such as data centers and mobile devices. While acknowledging potential risks, UBS remains optimistic about MU, though some analysts believe other AI stocks may promise even higher returns more quickly.

As the demand for AI drives the market, Micron is viewed as a company that can leverage its expertise in memory technology to benefit from the evolving landscape.