Barclays raises Micron stock price target to $195 on HBM growth

Barclays has raised its price target for Micron Technology (MU) to $195 from $175, maintaining an Overweight rating, citing stronger near-term fundamentals driven by aggressive high-bandwidth memory (HBM) commentary and enterprise SSD price increases. This positive outlook is reinforced by Micron's recent Q4 FY25 earnings exceeding expectations, improved margins, robust end-market outlooks, and increased capital expenditure for DRAM capacity expansions, with BofA Securities also raising its target to $180 due to AI-driven HBM demand and industry supply discipline.

Analysis

Analyst sentiment for Micron Technology (MU) is strongly positive, driven by Barclays raising its price target to $195.00 with an Overweight rating. This revision is based on strengthening near-term fundamentals, specifically more aggressive high-bandwidth memory (HBM) commentary and rising enterprise SSD prices, which are direct beneficiaries of the artificial intelligence buildout. The bullish outlook is substantiated by Micron's recent financial performance, including a Q4 FY25 earnings beat with an EPS of $3.03 against a $2.77 forecast and revenue of $11.32 billion surpassing an $11.11 billion estimate. Furthermore, the company's guidance includes a significant increase in capital expenditures from over $13 billion in FY25 to more than $18 billion in FY26, primarily for DRAM capacity expansion, signaling strong confidence in future demand. This CapEx surge is expected to directly benefit equipment suppliers like Lam Research (LRCX). While BofA Securities also raised its price target to $180, its Neutral rating suggests some caution, possibly related to the stock's near 100% year-to-date appreciation. A distinction is made between memory segments, with the outlook for DRAM appearing structurally stronger than for NAND, which is experiencing only a near-term tailwind from hard disk drive shortages.

Key Decisions for Investors

• Investors should weigh the strong bullish catalysts from AI-driven HBM and DRAM demand against the stock's nearly 100% year-to-date surge and the differing analyst opinions, with Barclays at 'Overweight' and BofA at 'Neutral'.
• Consider the second-order effects of Micron's capital expenditure plan, as equipment makers like Lam Research (LRCX) are explicitly cited as beneficiaries of the planned multi-billion dollar increase in DRAM capacity investment.
• Differentiate risk exposure between memory segments, recognizing that the structural demand drivers for DRAM appear more durable than the near-term tailwinds supporting NAND pricing.
• Monitor Micron's execution on its aggressive HBM roadmap and capital expansion, as its ability to meet projected demand will be critical to justifying the stock's current valuation and achieving new price targets.