Update shared on19 Sep 2025
Fair value Increased 6.20%Analysts have raised Micron Technology’s price target to $159.91, reflecting stronger-than-expected Q3 results, continued AI-driven demand in DRAM and HBM, and improved earnings visibility, outweighing lingering NAND pricing concerns.
Analyst Commentary
- Bullish analysts cite strong ongoing demand and tailwinds from artificial intelligence, data center growth, and hyperscaler adoption, particularly driving up DRAM and High Bandwidth Memory (HBM) sales.
- Multiple price target increases are attributed to better-than-expected Q3 results and raised guidance, with improving pricing and product mix shifts favoring DRAM over NAND, expanding gross margins and earnings forecasts.
- Tight supply conditions and resilient pricing, especially in DRAM and HBM, are anticipated to provide sustained tailwinds into 2026, with several firms highlighting Micron’s favorable positioning in these markets.
- Bullish analysts anticipate “beat and raise” quarters, improved market conditions, and robust long-term earnings potential (notably the prospect of $20 annualized EPS) as drivers not yet fully reflected in the share price.
- While some caution remains over persistent NAND pricing uncertainty and potential margin headwinds into 2026, the transformational mix and strong execution support higher valuations in the near and medium term.
What's in the News
- Japan will provide Micron with approximately $3.6B in support for advanced DRAM manufacturing and R&D at its Hiroshima facility, targeting mass production by August 2028 (Nikkei Asia).
- China has initiated an anti-discrimination investigation into U.S. chip trade policy and a separate dumping probe on U.S. analog chips, including companies like Micron (Reuters).
- The Trump administration is planning to impose tariffs on semiconductor imports from companies not relocating production to the U.S., potentially impacting Micron and peers (Reuters).
- The White House will not seek equity stakes in Micron and TSMC in connection with CHIPS Act funding, clarifying concerns about government ownership (Wall Street Journal).
- Micron CEO Sanjay Mehrotra is among technology leaders invited to a White House event hosted by President Trump to discuss AI and technology policy, although Elon Musk is not invited (The Hill).
Valuation Changes
Summary of Valuation Changes for Micron Technology
- The Consensus Analyst Price Target has risen from $150.57 to $159.91.
- The Future P/E for Micron Technology has risen from 17.13x to 18.03x.
- The Consensus Revenue Growth forecasts for Micron Technology has risen slightly from 16.6% per annum to 17.2% per annum.
Disclaimer
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