Key Highlights
- Micron (MU) shares climbed 6% during premarket hours to reach $798.37 on Tuesday.
- During a New York rally, President Trump highlighted Micron, describing the chipmaker as “great.”
- UBS analyst increased the MU price target to $1,625 from $535, representing more than a threefold increase.
- UBS projects Micron will produce over $400 billion in free cash flow by 2029.
- Mizuho maintained its Outperform rating, with MU remaining a Top Pick at an $800 price target.
Shares of Micron Technology (MU) advanced 6% during premarket trading hours on Tuesday, reaching $798.37, following a convergence of positive catalysts including presidential recognition and a substantial Wall Street price target revision that boosted the chipmaker amid broader semiconductor sector strength.
During a rally held in Suffern, New York on Friday, President Trump specifically mentioned Micron. “Micron, boy Micron’s great, they’re investing hundreds of billions,” the President remarked. This acknowledgment helped distinguish MU from the general semiconductor sector rally.
Micron has pledged to invest as much as $100 billion across a two-decade timeframe to construct what will become America’s largest semiconductor manufacturing facility in Clay, New York, situated north of Syracuse. The project broke ground earlier this year, with manufacturing operations anticipated to commence in 2030.
The chipmaker’s comprehensive U.S. capital deployment strategy totals $200 billion, encompassing memory production capacity expansion alongside research and development initiatives.
UBS Analyst Delivers Major Price Target Revision
The more significant development from Wall Street on Tuesday originated with UBS analyst Timothy Arcuri, who elevated his MU price target to $1,625 from $535—more than tripling the previous forecast.
The rationale: extensive long-term supply contracts are now established throughout much of the memory sector. Approximately 30% of industry-wide DDR volumes are projected to be secured at pricing marginally below current market rates.
These agreements span three to five years, featuring committed volume guarantees and partially predetermined pricing structures. UBS indicated this arrangement enables Micron to “exchange some near-term revenue for demand certainty and more stable earnings trajectory.”
The investment firm increased its earnings per share projections to $155, $167, and $117 for calendar years 2027, 2028, and 2029, respectively, compared to previous forecasts of $133, $122, and $77.
UBS further anticipates Micron will produce more than $400 billion in free cash flow during that timeframe, with EPS maintaining “comfortably above $100 throughout the period” even factoring in a modest memory market downturn in 2029.
Arcuri additionally observed he perceives “no reason why MU should trade a whole lot differently than NVDA in terms of P/E.”
Cloud service providers have already committed approximately 60% to 70% of industry server DDR5 volumes through these enhanced long-term supply arrangements, providing Micron with guaranteed demand for a substantial portion of its premium products.
Wall Street Analyst Views
Mizuho independently reaffirmed its Outperform rating and $800 price target on Tuesday, maintaining MU among its Top Picks.
Analyst Vijay Rakesh stated “memory remains the AI backbone, with demand outstripping supply through 2026-27.” He further noted there is “no clear line of sight on when the supply-demand imbalance could end.”
South Korean competitors also posted gains Tuesday. SK Hynix advanced 5.7% while Samsung increased 2.2% in domestic trading. Samsung additionally secured a preliminary bonus-pay arrangement with union representatives last week, preventing a possible work stoppage, although employee ratification remains outstanding.
Micron stock has surged 163% year-to-date in 2025 and 704% over the trailing 12 months as of Friday’s closing bell.
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