• The firm believes MU will continue to re-rate higher as more details emerge about the structural changes Al has driven to the entire memory complex.
• Thirty-nine of the 44 analysts rated MU stock a ‘Buy’ or higher, four rated it a ‘Hold,’ and one rated it a ‘Sell,’ according to Koyfin data.
• On Friday, Micron announced it had begun producing 1-alpha DRAM in the U.S.

Shares of Micron Technology (MU) are in focus in the current trading session after UBS more than doubled its price target on the stock, becoming the most bullish Wall Street analyst on the chipmaker.

The stock crossed the trillion-dollar market capitalization for the first time ever after it hit an all-time high of $891.22 on Tuesday morning.

UBS’ Takeaway

UBS said Micron is expected to benefit from long-term memory supply agreements that could lock in pricing and demand visibility across much of the industry, supporting significantly higher earnings and free cash flow forecasts through 2029 as AI-driven structural changes improve the durability and stability of the memory market, according to TheFly.

“We believe the market will start to put a more 'normal' multiple on the stock, and MU will continue to re-rate higher as more details emerge about the structural changes Al has driven to the entire memory complex,” UBS said in its research note.

UBS also expects the company's earnings per share to exceed $100 at least until 2029, supported by its long-term agreements. The firm maintained its ‘Buy’ rating and set a price target of $1,625, up from $535, implying more than 113% upside based on the stock’s Friday closing price.

The aggressive price target hike follows its recent expansion in manufacturing. On Friday, Micron said its Manassas, Virginia, facility has begun producing 1α (1-alpha) DRAM, which it claims is the “most advanced memory ever produced in the United States.”

U.S. President Donald Trump’s recent praise for the company also added to the stock’s current rally. “Micron is great,” Trump said on Friday.

What Retail Thinks About MU

On Stocktwits, retail sentiment toward MU stock was ‘neutral’ over the last 24 hours, with many users noting the increase in price target.

One user on the platform said that rerating is happening quickly.

Another user said they expect “a nice dividend rise and a stock split” in the near future.

Notably, 39 of the 44 analysts rated it a ‘Buy’ or higher, four rated it a ‘Hold,’ and one rated it a ‘Sell,’ according to Koyfin data.

MU stock has more than doubled in value so far this year and has risen nearly eightfold over the last 12 months, outperforming the S&P 500, the VanEck Semiconductor ETF (SMH), and the iShares Semiconductor ETF (SOXX).

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