Micron Technology's (MU) boost in fiscal Q4 guidance suggests continued strength in data center and consumer markets "with most of the upside coming from pricing, rather than volumes," UBS Securities said Monday in a report.

Industry checks were in line with Micron's expectations. with consumer inventories at "healthy levels," demand from smartphone and personal-computer customers to remain steady, and hyperscaler double data rate demand edging up into Q4, UBS said.

On Monday, Micron boosted Q4 non-GAAP earnings guidance to $2.85 per diluted share, plus or minus $0.07, on revenue of $11.2 billion, plus or minus $100 million. That compared with the previous EPS outlook of $2.50, plus or minus $0.15, on revenue of $10.7 billion, plus or minus $300 million.

UBS raised its forecast for high-bandwidth memory industry demand and lowered Micron's supply estimates in 2025 and 2026 due to expected capacity constraints, with the company's Idaho fabrication plant expected to ramp up in H1 2027.

UBS maintained its buy rating on Micron stock with a $155 price target.

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