Micron's Target Price Raised by 12% and 30% by Mizuho and UBS on HBM Growth

Micron Technology, a prominent player in the storage chip industry, has recently seen its target price raised by two major investment banks. On June 5, Mizuho Securities increased Micron's target price from 124 USD to 130 USD, maintaining a "buy" rating ahead of the company's fiscal third-quarter earnings report for 2025. Concurrently, UBS Group also raised its target price for Micron from 92 USD to 120 USD, citing improved business prospects and easing trade concerns.

The upward revisions in target prices reflect a growing optimism surrounding Micron's high-bandwidth memory (HBM) business, which is seen as a core growth driver. Industry analysts predict that the global HBM market will expand at an annual rate of 55% through 2027. Micron, with its increasing market share, is expected to achieve a 90% growth rate in HBM revenue, potentially accounting for 45% of the company's DRAM product revenue. This significant contribution is anticipated to boost overall revenue and profit margins.

Micron Technology's core business encompasses dynamic random-access memory (DRAM) and non-volatile semiconductor storage devices, with applications ranging from data centers and personal computers to mobile devices and automotive electronics. The company is well-positioned to benefit from long-term growth trends in artificial intelligence, data center construction, and the increasing penetration of smart vehicles.

Both investment banks emphasized Micron's competitive advantages in the HBM sector, highlighting the higher value and profitability of HBM products compared to traditional storage chips. This technological edge is expected to drive Micron's earnings growth, making it a key factor in the company's financial performance.