BofA Securities raises Micron stock price target to $180 on AI demand

BofA Securities raised its price target on Micron Technology (MU) to $180 from $140, while maintaining a Neutral rating, driven by robust AI-fueled high bandwidth memory (HBM) demand and industry supply discipline. The firm significantly increased its FY26 and FY27 EPS estimates to $16.28 and $17.55, respectively, following Micron's recent Q4 FY25 results that surpassed revenue and EPS forecasts. Despite the positive outlook, the Neutral stance reflects concerns over potential market share and pricing impacts from Samsung's entry into the HBM market in calendar year 2026.

Analysis

BofA Securities has raised its price target on Micron Technology (MU) to $180 from $140, reflecting a bullish outlook on earnings potential, while paradoxically maintaining a Neutral rating. The target increase is underpinned by significant upward revisions to fiscal year 2026 and 2027 EPS estimates, which were raised by 38% and 56% to $16.28 and $17.55, respectively. This optimism is fueled by strong AI-driven demand for High Bandwidth Memory (HBM) and disciplined industry supply that is elevating pricing. The company's recent performance validates this view, with reported fourth-quarter EPS of $3.03 and revenue of $11.32 billion, beating consensus estimates by 9.39% and 1.89%, respectively, and contributing to a nearly 98% year-to-date share price increase. However, BofA's cautionary Neutral stance stems from two key concerns: fourth-quarter HBM sales were merely in-line with expectations at approximately $2 billion, and the anticipated entry of Samsung into the HBM market poses a significant competitive threat to Micron's market share and pricing power in calendar year 2026.

Key Decisions for Investors

• Given the stock's significant 98% year-to-date run-up and strong earnings momentum, investors may consider holding current positions to capitalize on the ongoing AI cycle, though the Neutral rating suggests much of the good news is already priced in.
• It is critical to monitor competitive intelligence regarding Samsung's HBM market entry and production yields, as this is the primary risk factor cited by BofA that could disrupt Micron's pricing power and market share in 2026.
• While the new $180 price target implies further upside from the current $166.41 level, the Neutral rating suggests a balanced risk/reward profile, warranting a careful assessment of whether the current valuation fully accounts for both the robust near-term demand and the longer-term competitive pressures.