UBS just tripled down on Micron Technology. The investment bank raised its price target on MU shares from $535 to $1,625, representing the most bullish call on Wall Street for the memory chipmaker. Micron shares responded accordingly, surging as much as 14% in premarket trading on May 26.
With the stock previously hovering around $800, UBS’s new target implies roughly 100% upside from recent levels.
What’s driving the upgrade
The short answer: artificial intelligence is eating the world, and it’s hungry for memory. Specifically, high-bandwidth memory, or HBM, the specialized chips that power the data centers training and running AI models. Micron is one of only three companies on the planet that can manufacture this stuff at scale, alongside Samsung and SK Hynix.
UBS’s revision reflects what it sees as stronger-than-expected demand projections for HBM and improved pricing power across the broader memory market.
