03:18 PM EDT, 06/10/2024 (MT Newswires) -- Micron Technology's ( MU ) results will align more closely to the midpoint of its guidance due to the impact of Taiwan earthquake, which resulted in lost dynamic random access memory bits, UBS said in a note emailed Monday.

This setback is offset by an increase in the pricing of DRAM and growth in shipments and pricing of NAND bits, according to the note.

The combination of artificially low DRAM production and higher average selling prices creates a favorable scenario for Micron's Q4 guidance and an outlook for revenue and earnings ahead of Wall Street's estimates will be seen positively by the investors, the investment firm added.

UBS said that high bandwidth memory, or HBM, demand is surpassing expectations and is pushing more DRAM manufacturers to allocate additional capacity to HBM production resulting in decreased double data rate memory capacity and increased pricing despite modest demand.

UBS raised the price target on Micron to $155 from $125 and kept its rating at buy.

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