Micron Technology (MU) shares surged Tuesday following a significant price target upgrade from UBS.
Analyst Timothy Arcuri raised the firm’s target to $1,625 from $535, marking a new Wall Street high. This valuation suggests a potential market capitalization of $1.8 trillion for the semiconductor company.
UBS cites AI-driven structural changes in the memory market as the primary catalyst for the upgrade. Long-term supply agreements for high-bandwidth memory (HBM) and DDR5 are expected to secure pricing and demand visibility.
The firm significantly increased its earnings and free cash flow forecasts for Micron through 2029.