UBS analysts have boosted their price target on ‘Buy’-rated Micron Technology Inc (NASDAQ:MU) to $245 from $225, pointing to intensifying shortages in the memory market.
Micron shares traded up 5.6% at about $203 on Thursday afternoon, having surged more than 140% in the year to date.
“Our latest round of industry checks points to a very robust demand environment being met by acute and worsening DRAM supply shortages – we are increasing pricing once again, now see 2026 EPS power approaching $30, and raising price target from $225 to $245,” the analysts wrote.
They highlighted strong demand from US hyperscalers, noting that “DDR bit demand is now doubling year-over-year in 2026 and even smartphone customers now asking for more DRAM supply.”
UBS said the firm expects DRAM profitability to strengthen further, projecting that “DDR gross margins will surpass HBM for the first time in early 2026,” even as Micron’s ramp in high-bandwidth memory (HBM) revenue remains constrained by capacity limits.
The report also anticipates a more durable memory cycle, observing that “most, if not all, of the capacity addition across the industry through 2027 will likely go to HBM,” allowing suppliers to allocate production to higher-value markets.
In NAND memory, the firm noted tightness was particularly pronounced in enterprise SSDs, with new equipment orders underway by several producers.
UBS believes that these conditions are expected to support strong pricing and profitability for Micron’s core DRAM and NAND business.
The firm also updated its financial forecasts. UBS raised 2026 revenue and EPS estimates to $63.8 billion and $24.04, respectively, from $56.9 billion and $19.13, while 2027 revenue and EPS forecasts rose to $75.9 billion and $30.37, from $66.4 billion and $24.16.
“On the back of a very robust demand environment and improved profitability, we now model net capex of $19.5B/$22B in C2026/2027,” UBS added.