Micron Technology, Inc. (NASDAQ:MU) is one of the AI Stocks in the Spotlight for Investors. On December 11, UBS analyst Timothy Arcuri raised the price target on the stock to $295.00 (from $275.00) while maintaining a “Buy” rating. Firm analyst sees stronger DRAM/NAND pricing, tightening supply, and pre-purchase orders supporting long-term margin expansion.
Arcuri anticipates fourth-quarter 2025 industry contract pricing for DDR memory to increase an estimated 35% quarter-over-quarter, up from the previous 21%. Meanwhile, NAND pricing is likely to rise about 20% quarter-over-quarter in contrast to the earlier projection of 15%.
In continuation of these strong pricing trends, the firm further forecast first-quarter 2026 contract pricing for DDR memory to boost another 30% quarter-over-quarter and NAND pricing to rise 20%.
Prices in different memory types are also likely to rise due to tight supply. This significant “undersupply” in DRAM and NAND memory is likely to last until the first quarter of 2027 and the fourth quarter of 2026. As a result, customers may secure volumes and contract pricing earlier in the quarter.
“We flag an even stronger pricing environment in both core DRAM and NAND than we had previously assumed,” he wrote. “Against this backdrop of tightening supply, we walk EPS estimates higher yet again and see EPS of ~$38 out in C2027E, justifying a PT of $295 (up from $275).”
Leaving revenue and earnings expectations for Micron’s fiscal first quarter unchanged, the analyst believes that the estimates were “well ahead of the company’s guidance and practically all driven by better pricing.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
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