Micron stock rose about 14.2% in early trading on Tuesday after UBS raised its price target more than threefold, citing stronger AI demand and long-term supply deals.
UBS lifted its target to USD 1,625 from USD 535, compared with Micron Technology’s Friday closing price of USD 751. The new target was the highest among 46 brokerages covering the stock.
The revised target implies a possible valuation close to USD 1.8 trillion within 12 months. Micron’s market capitalisation stood at USD 846.93 billion as of Friday’s close.
UBS said long-term industry agreements that lock in volumes and partially fix prices could reduce Micron’s historically volatile earnings. The brokerage said the deals may cover a larger share of DRAM supply and improve demand visibility.
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The brokerage said hyperscalers are increasingly willing to trade pricing flexibility for long-term supply assurance. UBS said that the shift could support a higher valuation multiple for Micron as investors gain confidence in earnings durability.
Micron traded at 8.42 times expected earnings over the next 12 months, compared with 21.1 for the S&P 500 and 24.66 for the Nasdaq 100.
