Featured News Headlines
Deutsche Bank Raises Micron (MU) Price Target to $200 After Strong Q4
Micron Technology (NASDAQ: MU) has garnered renewed attention after Deutsche Bank increased its price target from $175 to $200 while maintaining a Buy rating. The stock, trading at $166.41 at the time of writing, has delivered a remarkable year-to-date gain of 98%, according to InvestingPro data.
Impressive Q4 and Margin Outlook Drive Optimism
Deutsche Bank highlighted Micron’s strong performance in the August quarter, noting that the company exceeded high expectations. A key focus was on Micron’s gross margins, which were guided approximately 500 basis points higher than both Deutsche Bank’s and broader Street forecasts.
The bank emphasized that this margin momentum is anticipated to persist into 2026, supported by various favorable factors such as supply constraints that drive higher average selling prices, stringent cost controls, and a robust product mix.
Confidence in High Bandwidth Memory Business
In its analysis, Deutsche Bank expressed strong confidence in Micron’s High Bandwidth Memory (HBM) division. The firm maintained its expectation that Micron will sustain its HBM market share through 2026, despite the challenges posed by new market entrants and demanding technical specifications.
However, clarity on HBM pricing agreements for 2026 and beyond remains awaited. Deutsche Bank described Micron as an “underappreciated enabler of AI with the luxury of prioritizing profitability over market share,” underscoring the company’s strategic advantage in balancing growth and earnings.
Strong Fiscal Year 2025 Financial Results
Micron recently reported fiscal Q4 results that surpassed both its own updated guidance and consensus estimates. For the full fiscal year 2025, the company posted revenue growth of 49%, reaching $37.4 billion.
Earnings per share (EPS) came in at $3.03, beating the forecasted $2.77. Quarterly revenue was $11.32 billion, exceeding the anticipated $11.11 billion. These robust figures reinforce Micron’s strong operational execution and market position.
Broader Analyst Upgrades Reflect Positive Momentum
Following Micron’s strong earnings report, other major financial institutions have also revised their price targets upwards.
CLSA reiterated its Outperform rating and set a new price target of $190, citing the company’s strong quarterly results.
Barclays raised its price target to $195, highlighting growth in Micron’s high-bandwidth memory and enterprise SSD pricing as key growth drivers.
Meanwhile, BofA Securities increased its price target to $180, attributing the upgrade to sustained demand from artificial intelligence applications and disciplined supply management in the memory market.
Market Position and Future Prospects
Collectively, these developments point to Micron’s solid market positioning and the company’s ability to navigate an increasingly competitive landscape. Analysts have noted consistent pricing power and demand strength across Micron’s end markets, reinforcing a positive outlook despite ongoing sector challenges.
Deutsche Bank’s recognition of Micron as a key enabler in AI technology—with the unique ability to focus on profitability rather than solely chasing market share—positions the company favorably for long-term growth.
