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

Micron Technology, Inc. (MU.US), a prominent player in the storage chip industry, has recently seen its target price raised by two major investment banks. This development highlights the increasing optimism surrounding the company's high-bandwidth memory (HBM) business, which is emerging as a key growth driver.

On June 5, Mizuho Securities increased its target price for Micron 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 raised its target price from 92 USD to 120 USD, also maintaining a "buy" rating. Both banks cited improved business prospects and easing trade concerns as reasons for the upward revisions.

Industry analysts point out that Micron is well-positioned to capitalize on the surging demand for high-bandwidth memory. It is projected that the global HBM market will grow at an annual rate of 55% through 2027. Micron, with its increasing market share, is expected to see its HBM business revenue grow by 90%, potentially accounting for 45% of its DRAM product revenue. This significant contribution is anticipated to boost the company's overall revenue and profit margins.

Micron'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 trends of artificial intelligence, data center construction, and increasing smart car penetration are providing long-term growth support for its core business.

Both investment banks emphasized Micron's competitive advantages and technological barriers in the HBM sector. Analysts from Mizuho noted that HBM products offer significantly higher value compared to traditional storage chips, with superior gross margins that could drive Micron's profitability to new heights.

As a leading provider of storage solutions, Micron's strategic focus on innovation and its comprehensive product portfolio position it well to benefit from the ongoing digital transformation and the increasing reliance on data-intensive technologies. The company's investments in advanced memory technologies are expected to yield long-term benefits, further solidifying its leadership in the high-bandwidth memory market.

In conclusion, the recent target price adjustments by Mizuho Securities and UBS Group reflect growing confidence in Micron's high-bandwidth memory business. With the demand for high-performance computing solutions on the rise, Micron is poised to capitalize on this trend and achieve sustainable growth. The company's strategic focus on innovation and its robust product offerings make it an attractive investment opportunity in the semiconductor sector.