Micron rises; William Blair initiates with 'outperform'

Memory chipmaker Micron Technology's MU.O shares rise 2.5% to $398.65 premarket

William Blair initiates coverage with "outperform" rating; says co is positioned as a major beneficiary of the current AI boom, which has supercharged demand for memory and driven up pricing as supply struggles to catch up with demand

Brokerage says it expects MU to grow adjusted EPS over 275% over the next two years

Adds it expects MU to grow its high-bandwidth memory revenue 164% in fiscal 2026 and 40% in fiscal 2027

Brokerage says investors should consider competition in HBM from Samsung - brokerage

Adds a large portion of FCF is being invested in expanding fab capacity, signaling semiconductor capital equipment suppliers may be capturing a significant amount of value and potentially reducing MU's overall profitability

Average rating of 46 analysts covering MU is "buy" and their median PT is $350 - LSEG-compiled data

In 2025, MU stock more than tripled vs. ~42% gain in Philadelphia SE Semiconductor Index .SOX