Summary
UBS raised its price target on Micron Technology (MU) to $450 from $400 and reiterated a Buy rating, based on what it describes as strengthening pricing dynamics across the memory market, including both DRAM and NAND. The firm updated its near-term contract price outlooks, lifted Micron earnings forecasts for 2026 and 2027, and extended its view of memory supply shortages into 2027. Multiple other analysts have also increased targets for the company, and Micron is preparing to announce a new NAND-focused manufacturing investment in Singapore.
UBS forecast updates
UBS now expects first-quarter 2026 industry contract pricing for DDR memory to rise roughly 62% quarter-over-quarter, a modest improvement versus its prior estimate. For NAND, the firm is forecasting about a 40% quarter-over-quarter increase in the same period, up from an earlier projection of 27%.
On supply dynamics, UBS sees shortages persisting farther into 2027 than it had previously anticipated. The firm projects DRAM could remain undersupplied through the fourth quarter of 2027, while NAND may stay undersupplied until the first quarter of 2027. UBS notes that rising prices have already induced some demand destruction in PCs and smartphones but still expects the supply tightness to extend.
Industry revenue and Micron earnings
UBS projects combined memory industry revenue (DRAM plus NAND) to reach approximately $566 billion in 2026 and roughly $788 billion in 2027, figures the firm says could exceed the entire semiconductor industry’s 2024 revenue. Against that backdrop, UBS raised its Micron earnings-per-share estimates to about $54 in 2026 and $75 in 2027.
The firm also highlighted valuation context, noting that at current prices Micron trades at approximately 5 times earnings, while hard disk drive stocks trade at more than twice that multiple.
Other analyst moves and company plans
The UBS action is part of a broader cluster of analyst target increases. Mizuho raised its target to $480, citing DRAM and NAND pricing tailwinds that could bolster Micron’s growth and margins into 2026. HSBC moved its target to $500, attributing the change to a rapid rally in DRAM prices. TD Cowen lifted its target to $450, pointing to worsening shortages in the memory market. Stifel adjusted its target to $360, observing that growth in AI cloud infrastructure has absorbed DRAM output and contributed to a market shortage.
Separately, Micron is preparing to announce a new investment in memory chip manufacturing capacity in Singapore, with the planned build focused on NAND flash memory production.
Market implications
The combined set of analyst revisions and UBS’s updated forecasts underscores a market view in which strengthening memory pricing and extended supply constraints could materially affect revenue and margin outcomes in the memory segment. The firms that raised targets point to pricing and shortage dynamics as the primary drivers supporting a higher valuation outlook for Micron.
Key takeaways
- UBS raised Micron’s price target to $450 from $400 and maintained a Buy rating.
- UBS now forecasts DDR contract pricing to rise ~62% q/q in Q1 2026 and NAND pricing to rise ~40% q/q, up from a prior 27% projection.
- UBS expects DRAM shortages to potentially persist through Q4 2027 and NAND shortages through Q1 2027, with industry revenue projected at about $566 billion in 2026 and $788 billion in 2027.
Short-form context and note on risks
Multiple brokerages increased Micron targets amid pricing rallies and worsening memory shortages, while the company readies a NAND-focused capacity investment in Singapore. UBS also lifted Micron EPS estimates to roughly $54 in 2026 and $75 in 2027 and observed that Micron’s current valuation is about 5 times earnings.
Disclosure
This story reports analyst forecasts and company plans as presented above. The article does not include additional commentary beyond those reported figures and statements.