UBS Reiterates Buy on Micron (MU) Ahead of Earnings, Citing Strong AI Memory Demand

Micron Technology, Inc. (NASDAQ:MU) is one of the Trending AI Stocks on Wall Street.  On December 8, UBS reiterated a “Buy” rating on the stock with a $275.00 price target. The rating affirmation comes ahead of the company’s upcoming earnings report on December 16^th, with analysts noting robust AI-driven tailwinds for the stock.

Analyst Timothy Arcuri sees a favorable setup for Micron heading into the print, which is why it leaves its estimates unchanged from previous in-quarter updates “which remain well ahead of MU’s NovQ guidance and Street?.”

Micron did surprise investors as it did not positively preannounce F1Q (Nov), but conversations with the management indicate that MU is trying to move away from these “explicit preannouncements.”

Previously, Mizuho noted how DRAM prices are spiking, and demand for NAND high-bandwidth memory (HBM) is accelerating because AI companies are buying heavily to support their AI functionality.

UBS has also predicted an earnings beat based on this “tightening supply” of DRAM prices leading to “DDR gross margin surpassing HBM for the first time in early C2026.” This is even as Micron faces what the firm believes will be a slightly slower ramp in HBM revenue driven by capacity limitations.

“All things considered, we reiterate our long-held view that this cycle will prove structurally more durable as HBM ‘crowds out’ the traditional memory market as most, if not all, of the capacity addition across the industry through C2027 will likely go to HBM. On unchanged estimates, our PT stays at $275 and we maintain our 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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