Micron shares rally after UBS projects more than 100% upside potential (MU)
May 26, 2026 6:51 AM
IH Market News
Shares of Micron Technology (NASDAQ:MU) surged 6.3% in premarket trading to $798.37 after UBS sharply increased its price target on the memory chip maker to $1,625 from $535, citing the growing adoption of long-term supply agreements across the memory industry.
UBS sees structural shift in Micron’s earnings profile
In a research note led by analyst Timothy Arcuri, UBS said long-term agreements have now become firmly established across much of the memory-chip sector.
The bank estimates that as much as 30% of global DDR memory volumes could soon be tied to pricing agreements set slightly below current market levels.
UBS said these enhanced supply arrangements, typically spanning three to five years and including fixed volume commitments alongside partially fixed pricing structures, will enable Micron to “trade some near-term revenue for demand visibility and a smoother earnings profile.”
Earnings forecasts raised significantly through 2029
UBS increased its earnings-per-share projections for Micron to $155 for calendar year 2027, $167 for 2028 and $117 for 2029, compared with previous forecasts of $133, $122 and $77, respectively.
The bank also forecast that Micron could generate more than $400 billion in free cash flow over the same period.
According to UBS, earnings per share should remain “comfortably >$100 throughout the period” even if the memory market enters a moderate downturn in 2029.
UBS compares Micron valuation to Nvidia
The new $1,625 target price is based on roughly 15 times next-12-month earnings.
Arcuri added that he sees “no reason why MU should trade a whole lot differently than NVDA in terms of P/E.”
UBS said hyperscale cloud providers have already secured approximately 60% to 70% of industry-wide server DDR5 supply through enhanced long-term contracts, giving Micron guaranteed demand for a substantial portion of its highest-value products.
Mizuho reiterates bullish stance on AI-driven memory demand
Separately on Tuesday, Mizuho Financial Group maintained its Outperform rating and $800 price target on Micron, while continuing to list the company as a Top Pick.
Mizuho highlighted strong confidence in long-term demand trends, stating that memory products remain central to the expansion of artificial intelligence infrastructure.
“We believe there’s no clear line of sight on when the supply- demand imbalance could end as demand durability sees secular long-term tailwinds with DRAM/NAND as key AI enablers,” wrote Mizuho analyst Vijay Rakesh.
Micron Technology stock price
Original: Micron shares rally after UBS projects more than 100% upside potential (MU)
Market Data 
Markets 
AI
