** 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

(Reporting by Jaspreet Singh in Bengaluru)

((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))