Deutsche Bank Bullish on Micron (MU) Ahead of Earnings, Sees Strong AI-Driven Demand

Core Viewpoint - Micron Technology, Inc. is highlighted as a significant player in the AI stock market, with Deutsche Bank reiterating a "Buy" rating and raising the price target to $175 per share from $155 ahead of earnings [1][2]. Group 1: Earnings and Market Position - Deutsche Bank raised its earnings estimates for Micron for the second time this quarter, indicating strong confidence in the company's performance ahead of the earnings report scheduled for September 23 [1]. - The firm anticipates that DRAM supply will remain tight until 2026, driven by high demand for High Bandwidth Memory (HBM), which is expected to support average selling price (ASP) growth and enhance gross margins [1][2]. - Micron is well-positioned to maintain its HBM market share at attractive profitability levels, despite concerns regarding HBM pricing in 2026 being considered overstated [2]. Group 2: Pricing and Demand Dynamics - In the NAND segment, there is positive pricing momentum and an increase in content per device, which supports the company's outlook [2]. - The supply-demand environment is favorable, particularly for HBM in AI applications, suggesting potential upside for Micron's estimates and valuation multiples [2]. - Deutsche Bank projects a 3% increase in revenue for CY26 to $54.3 billion and a 6% rise in EPS from $14.55 to $15.45, leading to the revised price target based on a consistent ~11x P/E ratio [2].