Micron Technology’s future performance is looking bright, according to a recent report by UBS. The firm has raised its price target on the company to $120 from $95, maintaining a Buy rating. The analyst anticipates that Micron’s results will be at the higher end of the company’s guidance, despite not issuing a positive pre-announcement.
Despite a slight moderation in mobile and PC demand in the DRAM market, server demand is increasing due to High Bandwidth Memory (HBM) affecting DDR5 availability. The analyst expects DRAM prices to rise in the second half of the year due to server supply tightness and demand from new smartphone and PC models for AI applications.
On the NAND front, the market is solid with increasing visibility into enterprise Solid State Drives (SSDs). Limited capital expenditure from producers is leading to higher pricing. Based on these observations, the analyst has adjusted estimates for Micron, positioning them above the consensus, and raised the price target.
The updated price target reflects a more optimistic view of Micron’s future performance, especially in the NAND segment. The analyst’s comments point towards a positive longer-term outlook in terms of pricing dynamics and market demand. Overall, while the short-term conditions may be balanced, the future looks bright for Micron Technology.
