UBS Lifts Micron (MU) EPS Forecasts on Stronger DRAM and NAND Pricing

Core Insights - Micron Technology, Inc. has been highlighted as a significant player in the AI stock market, with UBS analyst Timothy Arcuri raising the price target to $295.00 from $275.00 while maintaining a "Buy" rating, citing stronger DRAM/NAND pricing and tightening supply as key factors for long-term margin expansion [1][4] Pricing Trends - The fourth-quarter 2025 industry contract pricing for DDR memory is expected to increase by approximately 35% quarter-over-quarter, up from a previous estimate of 21%. NAND pricing is projected to rise about 20% quarter-over-quarter, an increase from the earlier projection of 15% [2] - For the first quarter of 2026, DDR memory contract pricing is forecasted to increase by another 30% quarter-over-quarter, while NAND pricing is expected to rise by 20% [2] Supply Dynamics - A significant undersupply in DRAM and NAND memory is anticipated to persist until the first quarter of 2027 and the fourth quarter of 2026, leading customers to secure volumes and contract pricing earlier in the quarter [3] Earnings Projections - The analyst has revised EPS estimates higher, projecting EPS of approximately $38 for C2027E, which supports the new price target of $295. The revenue and earnings expectations for Micron's fiscal first quarter remain unchanged, as they are considered well ahead of the company's guidance, primarily driven by improved pricing [4]