Loading article...
UBS triples Micron price target to $1,625 citing long-term memory supply deals through 2029
UBS has raised its price target on Micron Technology from $535 to $1,625, a near tripling that reflects confidence in long-term memory supply agreements supporting significantly higher earnings and free cash flow through 2029. Micron shares were already surging after President Trump highlighted the company's $200 billion US investment commitment.
UBS has dramatically raised its price target on Micron Technology from $535 to $1,625, representing a near tripling that has captured the attention of Wall Street. The Swiss investment bank cited long-term memory supply agreements that could support significantly higher earnings and free cash flow forecasts through 2029 as the primary driver for the upgrade.
The massive price target increase comes as Micron shares were already rallying, up more than 6 percent in pre-market trading after President Trump specifically highlighted the company at a rally on Friday. Trump called out Micron's commitment to invest approximately $200 billion in building out manufacturing capacity in the United States, giving the stock an additional boost.
The semiconductor sector has been a major beneficiary of the artificial intelligence boom, with memory chips playing a critical role in data centre infrastructure. Micron, as one of the world's largest memory chip manufacturers, is positioned to capture growing demand for high-bandwidth memory required by AI workloads, particularly in partnership with companies like NVIDIA.
In a separate development, nuclear energy company Oklo saw its shares surge nearly 10 percent after announcing a new pact with the US Energy Department. The deal highlights the growing intersection between energy infrastructure and technology investment as data centres require ever-increasing amounts of power to support AI computing demands.
The broader market was trading higher with S&P 500 futures up two-thirds of one percent and Nasdaq futures gaining more than one percent, despite ongoing hostilities in the Middle East. The momentum trade continues to favour technology and semiconductor stocks, with investors looking past geopolitical uncertainty towards the structural growth story in AI and advanced computing.