The day before the results, Mizuho Securities is bullish on Micron Technology (MU.US): raising the target price to $182, optimistic about the prospects of HBM and memory.

Ruihui Securities raised the target price of Micron Technology, Inc. (MU.US) from $155 to $182, and maintained an "outperform" rating, which happened on the eve of Micron Technology, Inc.'s fourth quarter earnings announcement on September 23. The analyst team led by Vejay Lakshesh pointed out that the price increase was mainly based on the higher valuation of Micron's High Bandwidth Memory (HBM) and optimistic expectations for the Dynamic Random-Access Memory (DRAM) and NAND Flash memory markets. The Ruihui Securities analyst team emphasized that as two core types of memory, DRAM and NAND, the institution continues to see improvements in the NAND-DRAM pricing environment. After major suppliers recently cut production capacity and demand driven by artificial intelligence exacerbated supply shortages, Micron may stop providing DRAM/NAND quotes, and DRAM prices may achieve a 20-30% increase at current levels. On the business side, NVIDIA Corporation's (NVDA.US) GB300 product orders are stronger than expected, with GB300 (12-inch 288GB HBM3e) accounting for about 25% of shipments in the July quarter, and GB200 (192GB 8-inch HBM3e) is expected to account for over 50% in the October quarter, which is expected to bring upside to Micron's performance in the August and November quarters. In terms of technological iterations, the analyst team believes Micron is expected to continue to be one of only two qualified suppliers of HBM4, as Samsung Electronics currently does not have the corresponding qualifications. It has been revealed that SK Hynix and Micron have started delivering initial samples of HBM4 to NVIDIA Corporation, and mass production supply is expected to be achieved from the end of the second quarter to the beginning of the third quarter of 2026. It is worth noting that the pricing of HBM4 will be higher than HBM3e, and Micron has already confirmed sample deliveries to customers. In addition, the solid-state drive (SSD) market is expected to benefit from increased demand due to extended delivery cycles of Hard Disk Drives (HDD) to over a year, further supporting the overall positive trend in the memory market.