HSBC Raises Micron (MU) Price Target, William Blair Initiates With Outperform Rating

Core Insights - Micron Technology, Inc. (NASDAQ:MU) is recognized as one of the most profitable cheap stocks to invest in currently, with HSBC raising its price target from $350 to $500 while maintaining a Buy rating due to a significant increase in DRAM prices [1] Financial Performance - HSBC anticipates Micron will report a Q2 fiscal 2026 operating profit of $12 billion, reflecting an 88% increase quarter-over-quarter, with sales projected at $20 billion, a 47% increase compared to the previous quarter [2] - The firm also forecasts a 45% increase in DRAM blended average selling prices quarter-over-quarter, up from an earlier estimate of 37% [2] Market Position and Growth Potential - William Blair initiated coverage of Micron with an Outperform rating, citing the company's strong position for profit growth driven by rising AI demand and ongoing supply constraints expected to last until 2027 [3] - The firm predicts a multi-year upcycle in the memory market, particularly benefiting from high-bandwidth memory (HBM) used in AI accelerators, which is becoming a bottleneck in AI systems [4] - William Blair forecasts Micron's non-GAAP EPS to grow by over 275% over the next two years [4] Company Overview - Micron Technology, Inc. is a leading semiconductor technology company known for its innovative memory and storage solutions, offering a portfolio that includes high-performance DRAM, NAND, and NOR memory products [5]