Susquehanna Raises Micron (MU) PT to $200, Sees Strong Earnings Ahead

Core Viewpoint - Micron Technology, Inc. is highlighted as a significant AI stock to watch, with a price target increase from $160 to $200 by Susquehanna analyst Mehdi Hosseini, maintaining a Positive rating ahead of the earnings report on September 23 [1]. Group 1: Earnings Expectations - The firm anticipates Micron Technology will exceed expectations and provide an upward revision of guidance, with strong average selling prices and gross margins expected to persist into 2026 [2]. Group 2: Product Mix and Market Position - Concerns regarding a potential decline in High Bandwidth Memory prices in 2026 are countered by the firm, which cites Micron's shift towards higher-value products such as HBM, GDDR7, LPDRAM, and eSSD as key growth drivers [3]. - A transition from 8-high stacks in 2025 to 12-high stacks in 2026 is expected, with a projected increase of at least 50% in HBM4 Average Selling Price compared to HBM3E [4]. Group 3: Financial Projections - The firm projects a disciplined approach to capital spending across the industry, with Micron focusing on profitability rather than market share, leading to a forecast of $5 in quarterly EPS by the end of 2026 [4].