UBS just tripled its price target on Micron Technology. Not doubled. Tripled. Analyst Timothy Arcuri raised his target to $1,625 from a previous $535, maintaining a Buy rating on the memory chip giant. Shares responded by jumping roughly 8.4% in premarket trading on May 26.
What’s behind the massive target hike
Micron makes the DRAM and NAND memory chips that power everything from phones to the massive GPU clusters training the next generation of AI models. High-bandwidth memory, or HBM, has become the bottleneck component in advanced computing workloads. Micron is one of only three companies on earth that can manufacture it at scale.
Arcuri’s thesis centers on the expected rise of long-term supply agreements. Instead of Micron selling memory chips on the spot market where prices swing wildly quarter to quarter, major customers are locking in multi-year deals. That changes the entire earnings profile: predictable revenue, better margins, less cyclical pain.
The new $1,625 target implies more than 100% upside from Micron’s recent trading levels near $798. At that valuation, Arcuri is pricing the stock at roughly 15x next-12-month earnings, which he argues compares favorably to NVIDIA’s multiple.
