UBS Raises Micron (MU) Price Target to $275 on Tightening Memory Supply

UBS on Monday raised its price target for Micron Technology to $275, citing a sharper-than-expected tightening in the global memory supply backdrop. The bank said that both DRAM and NAND inventories are drawing down faster as demand for data center, AI, and consumer applications rebounds, which could support stronger pricing and margin recovery for Micron and other memory suppliers.

Analysts at UBS noted that recent industry signals — including reduced supplier inventory levels and improving purchase patterns from hyperscale cloud customers — point to a supply-constrained environment through the coming quarters. In their view, tighter supply dynamics could accelerate revenue and earnings recovery for major memory producers, with Micron positioned to benefit given its product mix and technology roadmap.

Micron shares have already reflected some of this optimism, but UBS suggested there remains upside to current market pricing if supply tightening persists and end-market demand continues to strengthen. The firm reiterated its positive stance on the stock, emphasizing execution on cost structure and node transitions as key drivers for margin expansion.

The broader semiconductor space is watching closely. Competitors and partners, including other major DRAM and NAND suppliers, face similar inventory cycles, meaning that a sustained supply shortage could lift pricing industry-wide. UBS also flagged macro risks — such as geopolitical developments, customer purchasing volatility, and potential capacity ramp changes — that could alter the trajectory.

Investors should weigh the upbeat supply narrative against execution risks and cyclicality inherent to memory markets. For shareholders, UBS’s upgrade to a $275 target signals conviction that Micron can capture improved pricing and mix, but the path will depend on both demand steadiness and disciplined capacity management across the industry.