Micron Technology (MU) has risen as a top name among memory stocks due in part to its position in the DRAM and HBM markets, which are experiencing elevated pricing and demand.
This prompted the analysts at Deutsche Bank to reiterate their Buy rating and increase its price target to $280 from $200 one week ahead of Micron’s first quarter fiscal 2026 financial results.
“Price increases in non-HBM DRAM are one of the most important drivers of earnings power in 2026, but the magnitude of those price increases is still in question,” said Deutsche Bank analysts, led by Melissa Weathers, in a Tuesday investor note. “The higher silicon intensity of HBM has absorbed a significant portion of wafer starts, causing supply tightness across existing lines. Indeed, various industry sources have indicated pricing to have increased dramatically in recent weeks, well into the double-digit range vs. summer levels.”
Deutsche Bank also increased its full-year fiscal 2026 earnings per share estimate on Micron by nearly 26%. It now expects the Idaho-based company to report full-year EPS of $20.63 versus its prior estimate of $16.41. It increased its full-year revenue estimate by 12% to $59.66B from $53.2B.
“All told, we believe MU is well poised to benefit from the upcoming memory cycle, with HBM driving structural changes in the industry that could warrant a higher valuation profile,” Weathers said. “In addition, we see MU as being particularly attractive among the memory names given its unique ability to prioritize profitability over market share in this environment.”
HSBC also initiated coverage today of Micron, giving the memory firm a Buy rating and a $330 price target.
Micron plans to release its first-quarter results after the bell on Wednesday, Dec. 17. A consensus estimate calls for adjusted EPS of $3.83 and GAAP EPS of $3.66. The revenue estimate expects $12.72B.
Micron shares have surged nearly 200% year to date.