Deutsche Bank Bullish on Micron (MU) Ahead of Earnings, Sees Strong AI-Driven Demand

Micron Technology, Inc. (NASDAQ:MU) is one of the AI Stocks You Should Not Ignore. On September 15, Deutsche Bank reiterated the stock as “Buy” and raised its price target to $175 per share from $155 ahead of earnings later this month.

The firm believes there is a lot of reason to celebrate ahead of earnings scheduled for after market close on Sept. 23

“We are raising our estimates for the second time this quarter and reiterating our Buy rating on MU’s shares into earnings.”

The firm sees DRAM supply staying tight into 2026 driven by high HBM demand, which will support ASP growth and drive gross margins higher.

Moreover, in NAND, pricing momentum and rising content per device adds support. The firm further noted that concerns around 2026 HBM prices are overstated and that Micron is well-positioned to maintain its HBM market share at “still-attractive profitability levels.”

“We see DRAM supply remaining tight into 2026 driven by HBM absorbing a significant amount of bit capacity (3:1 trade ratio and growing). This supply tightness should result in healthy ASP growth, driving GMs higher (DB sees clear path to >50% GMs). In NAND, we are encouraged by recent pricing momentum, as well as instances of rising content per device (see recent phone launches, hyperscaler eSSDs, etc.) We believe recent fears around HBM pricing in 2026 to be overblown, and see MU as particularly well positioned to maintain its HBM market share at still-attractive profitability levels. We don’t expect the company to offer much incremental commentary on current HBM contract negotiations given the uncertainty on supply in 2026 + uncertainty of timing of new product launches by customers. Given the rising importance of HBM in AI applications as well as a vastly favorable supply/demand environment, we see room for upside not only for MU’s estimates, but also its multiple. On higher estimates (CY26 revs rise +3% to $54.3b; EPS rises +6% from $14.55 to $15.45), we raise our P/T to $175 based on a consistent ~11x P/E. Reiterate Buy rating.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.

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