UBS Raises Micron EPS Forecast Amid Strengthening Memory Pricing Trends

UBS has revised upward its earnings per share (EPS) forecast for Micron Technology (MU), reflecting stronger-than-expected pricing trends in the DRAM and NAND memory markets. The bank now anticipates sustained improvement in memory pricing, driven by tighter supply dynamics and recovering demand from data centers, consumer electronics, and AI-driven workloads. This shift marks a notable change from earlier pessimism surrounding the memory cycle's recovery timeline. Key metrics indicate a significant turnaround: UBS now expects Micron’s full-year 2025 EPS to reach $5.80, up from a prior estimate of $4.90, representing a nearly 18% increase. The revision is underpinned by higher average selling prices (ASPs) across both DRAM and NAND, with NAND ASPs reportedly up 15% quarter-over-quarter and DRAM ASPs rising 12% in the third quarter of 2025. These gains suggest that industry-wide inventory corrections are nearing completion and that manufacturers are regaining pricing power. The positive outlook extends beyond Micron, with UBS noting that peers SK hynix and Samsung Electronics are also benefiting from the improved pricing environment. However, Micron’s execution in optimizing production capacity and securing key customer contracts—particularly in high-performance memory for AI accelerators—positions it as a top-tier beneficiary of the rebound. The bank maintains a 'Buy' rating on MU with a price target of $85. Market reaction has been favorable, with MU shares rising over 4% in pre-market trading. Investors are interpreting the upgrade as a leading indicator of broader cyclical strength in the semiconductor sector, particularly in memory subsegments. The momentum could influence capital allocation decisions across the tech supply chain and reignite interest in semiconductor equipment and foundry providers.