Mizuho Securities raised the price target on Micron Technology’s (NASDAQ:MU) stock to $182 from $155 ahead of the company’s quarterly results next week.
The firm has an Outperform rating on the memory chipmaker. Shares of Micron rose about 1% premarket on Tuesday.
Analysts led by Vijay Rakesh said that ahead of Micron’s fiscal fourth quarter results on Sept. 23, they have raised Micron’s High Bandwidth Memory, or HBM, estimates and price target combined with a constructive Dynamic Random-Access Memory, or DRAM, and NAND market.
DRAM and NAND are two different types of memories.
The analysts see stronger-than-expected orders of Nvidia’s (NVDA) GB300 potentially driving upside to Micron’s August quarter results and November quarter guidance. The analysts noted that potentially 25% of Nvidia’s shipments in its July quarter were GB300 (12-Hi 288GB HBM3e) versus GB200 (192GB 8-Hi HBM3e), with GB300 more than 50% of mix in October quarter (implying Upside Micron’s November quarter tailwind).
The analysts said they believe Micron could continue to be one of only two qualified suppliers on HBM4, as Samsung Electronics (OTCPK:SSNLF), they believe, is still not qualified.
Rakesh and his team believe initial samples of HBM4 for Nvidia’s Rubin already starting to ship from SK hynix (OTCPK:HXSCF) and Micron for a potential late second quarter of calendar 2026/early third quarter of calendar 2026 launch for Rubin, with HBM4 priced at a premium to HBM3e, while Micron has noted that samples have already been delivered to clients.
“We continue to see a better pricing environment across NAND-DRAM, resulting in a healthier supply/demand balance following recent capacity cuts at major suppliers. We believe tight supply could drive MU to stop providing DRAM/NAND quotes as AI drives demand, with DRAM prices potentially increasing 20-30% from current levels,” said Rakesh and his team.
The analysts also see tailwinds to nearline Solid-State-Drives, or SSDs, to meet customer needs, as Hard Disk Drives, or HDD, lead times have extended to more than one year.