UBS raised its price target on Micron shares on Wednesday following a series of constructive investor meetings with the company’s management. According to analysts, the discussions struck a positive tone regarding the durability of the memory cycle and the increasingly strategic importance of DRAM in artificial intelligence systems.
UBS analyst Timothy Arcuri said management stressed that investors continue to underestimate how fundamentally AI has transformed memory—particularly DRAM—into a critical strategic asset rather than a commodity.
The bank noted that each new generation of high-bandwidth memory is becoming obsolete much faster than traditional DRAM. This rapid turnover creates what UBS described as a disincentive for customers to build inventory, a shift that could reduce the historic cyclicality of the memory market.
Following the meeting, which included Micron’s CEO, CFO, and investor relations team, UBS raised its 2026 earnings per share forecast to around $45 from roughly $41. The firm also lifted its 2027 EPS estimate sharply, increasing it to approximately $60 from $42. As a result, the price target was raised to $400 from $300, while UBS reiterated its Buy rating on the stock.
UBS also highlighted severe supply constraints, noting that Micron is currently able to satisfy only about 50% to 75% of demand from key customers. Management indicated that adding new capacity will take a significant amount of time, reinforcing the bank’s view of an extended and durable memory upcycle.
In addition, UBS cited data suggesting that investors are undervaluing DRAM content growth in AI servers. The firm pointed to roughly threefold growth in DDR memory content between Nvidia’s Blackwell and Rubin architectures.
Taken together, UBS said these trends support the view that memory is evolving from a commodity into a strategic asset, a shift that could justify a re-rating of Micron’s stock as AI adoption continues to accelerate.
