Micron Technology could rise from here due to a skewed supply-demand imbalance, according to UBS. The bank reiterated its buy rating on the semiconductor stock and raised its 12-month price target to $245 per share from $225. This revised price forecast implies that shares of Micron could rally 28% from their Wednesday close of $191.94. Analyst Timothy Arcuri pointed to an intensifying shortage in DRAM, or dynamic random access memory, as a tailwind for Micron stock. “Our latest round of industry checks points to a very robust demand environment being met by acute and worsening DRAM supply shortages,” he wrote. “On the back of such tight supply conditions, we see profitability in core DRAM strengthening further.” MU YTD mountain MU YTD chart He highlighted an uptick in demand from both U.S. hyperscalers and even smartphone customers. However, this increased demand has not been accordingly met, since most new DRAM bits are currently still allocated to high bandwidth memory, or HBM applications instead, Arcuri wrote. “All things considered, we reiterate our long-held view that the cycle will likely be more durable this time as HBM ‘crowds out’ the traditional memory market (most, if not all, of the capacity addition across the industry through C2027 will likely go to HBM),” the analyst added. “This should continue to allow memory suppliers to allocate bits to the highest value markets.” Shares of Micron have surged more than 128% this year. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
