HSBC Raises Micron Price Target to $500, Citing 45% QoQ DRAM ASP Surge
HSBC raised Micron’s price target from $350 to $500 and maintained its Buy rating, citing AI-driven memory tightness and a 45% QoQ rise in blended DRAM ASPs. Analysts foresee Q2 operating profit of $12 billion (up 88% QoQ) on $20 billion in sales and fiscal 2026 profit of $51 billion on $84 billion revenue.
1. Micron’s High-Bandwidth Memory Supply Sold Out for 2026
Micron Technology has already committed its entire production of high-bandwidth memory (HBM) for calendar year 2026, with volume and pricing contracts finalized before the end of 2025. The company, one of only three global suppliers of HBM, is capitalizing on unprecedented demand driven by AI data-center accelerators. To address the supply crunch, Micron has earmarked over $200 billion for U.S. manufacturing expansion, including upgrades to its Virginia fab and new facilities in Idaho and New York, as well as a $1.8 billion intent to acquire a Taiwanese fabrication site.
2. Record Q1 FY2026 Revenue and Earnings Growth
In the first quarter of its 2026 fiscal year, which ended November 27, 2025, Micron reported revenue of $13.6 billion, up 57% year-over-year, and net profit margins approaching 40%. The company generated operating cash flow of $8.4 billion, a record increase from $5.7 billion a year earlier. Management’s guidance for the second quarter forecasts further record highs across revenue, margins, EPS, and free cash flow, reflecting continued strength in its AI-driven memory business.
3. HSBC Raises Price Target on Tightening Memory Market
Analysts at HSBC boosted their Micron price target from $350 to $500 while maintaining a Buy rating, citing a 92% share gain over the past three months driven by faster-than-expected DRAM price increases. HSBC now forecasts fiscal Q2 operating profit of $12 billion (up 88% sequentially) on $20 billion in revenue (up 47% sequentially), with blended DRAM average selling prices rising 45% quarter-over-quarter. The bank projects fiscal 2026 operating profit of $51 billion (up 368% year-over-year) on $84 billion in sales and expects ongoing capital expenditures to expand DRAM capacity in H2 2027.
4. Institutional Investors Increase Stakes in Micron
During the third quarter, several institutional investors established or expanded positions in Micron Technology. Avidian Wealth Enterprises acquired 2,165 shares valued at approximately $362,000, while Barnes Dennig Private Wealth Management and First Command Advisory Services added smaller stakes. Howard Hughes Medical Institute opened a $30,000 position, and AlphaQuest LLC increased its holdings by over 13,000%. Overall, institutional ownership of Micron stands at more than 80%, underscoring confidence in the company’s long-term AI memory leadership.