Micron Stock Draws Investor Attention Following A Price Target Boost From UBS

• UBS said that it believes Micron's cycle will be more durable this time as high-bandwidth memory "crowds out" the traditional memory market.
• The firm added that most, if not all, of the industry's capacity additions through 2027 will likely be directed toward high-bandwidth memory.
• Retail sentiment on Micron remained unchanged in the ‘bullish’ territory, with message volumes at ‘high’ levels, according to data from Stocktwits.

Micron Technology (MU) became the top trending ticker on Stocktwits after UBS raised its price target on the stock to $275 from $245 and noted that the company is likely tracking above the high end of its guidance.

UBS maintained a ‘Buy’ rating on the shares, according to TheFly. The firm said that its recent channel checks indicate "tight" supply conditions persist. Shares of Micron were down nearly 9% in early trading on Thursday.

Despite the lack of a positive preannouncement, Micron is likely tracking above the high end of its guidance with double data rate five contract negotiations now edging toward up 20% quarter-over-quarter or higher, UBS noted.

UBS said that it believes Micron's cycle will be more durable this time as high-bandwidth memory "crowds out" the traditional memory market. Most, if not all, of the industry's capacity additions through 2027 will likely go to high-bandwidth memory, the firm added.

Semiconductor Tariffs

On Wednesday, according to a Reuters report, U.S. officials are privately saying that they might not levy the long-promised semiconductor tariffs soon. The report, citing people with knowledge of the matter, noted that officials relayed these messages over the last several days to stakeholders in the government and private industry.

The report added that the Trump administration is trying not to provoke China and is taking a cautious stance. The news comes as a heave of relief for several companies in the space, including AMD (AMD), Intel (INTC), Marvell (MRVL), Micron (MU) and Nvidia (NVDA), among others.

What Is Retail Thinking?

Retail sentiment around Micron remained unchanged in the ‘bullish’ territory, with message volumes at ‘high’ levels, according to data from Stocktwits.

A user on Stocktwits noted that Micron has signed contracts for years with significant growth and revenue, adding that UBS’ $275 price target “is very conservative.”

Shares of Micron have gained over 150% this year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: BBWI Stock Cracks After CEO Warns Of Tough Holiday Quarter, Slashes Full-Year Guidance

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