UBS Raises Micron (MU) Price Target to $400, Citing AI-Driven Re-Rating

Core Viewpoint - Micron Technology, Inc. is being closely monitored by analysts as a significant player in the AI sector, with UBS raising its price target to $400 from $300 while maintaining a "Buy" rating, driven by AI demand and improved earnings per share (EPS) durability [1][4]. Group 1: Analyst Insights - UBS's price target increase follows positive investor meetings with Micron's management, including the CEO and CFO, which have contributed to a favorable outlook on the memory cycle's durability [2]. - Analysts believe that the market is underestimating the strategic importance of memory, particularly DRAM, in the context of artificial intelligence, and the durability of EPS is not fully appreciated due to the rapid obsolescence of High Bandwidth Memory (HBM) compared to traditional DRAM [3]. Group 2: Financial Projections - UBS has revised its earnings estimates, raising the 2026 EPS forecast from approximately $41 to $45 and the 2027 EPS from $42 to $60, while also increasing the price target to $400 [4].