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Micron (MU) stock is charging higher on Tuesday as UBS analysts led by Timothy Arcuri nearly tripled their price target on the memory chips specialist to $1,625.
The upward momentum pushed MU’s market cap above the coveted $1 trillion mark, making it the 11th U.S. company to have hit that milestone.
Year-to-date, Micron stock is up an exciting 185% as artificial intelligence (AI) tailwinds continue to pour capital into the memory-centric names.
UBS Sees Micron Stock as Undervalued
Even after the explosive surge, MU shares are going for less than 13x forward earnings at writing, which represents a significant discount to Nvidia (NVDA) at about 27x.
However, there’s every reason for Micron to command a similar price-to-earnings (P/E) multiple as NVDA.
Why? Because memory has evolved from a cheap commodity into the core bottleneck of artificial intelligence infrastructure, the UBS analyst told clients in a research note today.
Timothy Arcuri’s upwardly revised price target suggests Boise-headquartered Micron Technology Inc could nearly double again over the next 12 months.
And technicals substantiate his view; MU currently sits decisively above its key moving averages (MAs), indicating a strong uptrend that’s unlikely to fade in the absence of a meaningful catalyst.
LTAs to Drive MU Shares Higher in 2026
UBS now sees Micron’s cumulative free cash flow between 2027 and 2029 to hit an astronomical $400 billion, with annual per-share earnings (EPS) scaling past $100.
Analyst Timothy Arcuri is particularly constructive on the company’s new enhanced LTAs, which offer higher cross-cycle ROIC and “improved visibility into now-committed customer demand.”
Because MU’s high-bandwidth memory (HBM) is sold out through 2026, these long-term contracts guarantee a high earnings floor, shielding the firm from the brutal downcycles of the past.
Note that Micron shares pay a small dividend as well, which makes them even more attractive as a long-term holding.
Micron Remains Buy-Rated Among Wall Street Firms
Heading into Tuesday, Wall Street had a consensus “Strong Buy” rating on MU stock with a mean price target of roughly $628.
However, it’s reasonable to assume that upward revisions like that of UBS may follow in the weeks ahead.
