Key Highlights
- Micron (MU) shares climbed 6% during premarket hours on Tuesday, reaching $798.37.
- Former President Trump highlighted Micron during a rally in New York, describing the chipmaker as “great.”
- UBS analyst significantly increased MU’s price target to $1,625, up from the previous $535 level.
- The firm projects Micron will produce more than $400 billion in free cash flow by 2029.
- Mizuho maintained its positive stance on MU with an Outperform rating and $800 price objective, listing it among top selections.
Shares of Micron Technology (MU) experienced a 6% surge in early Tuesday trading, climbing to $798.37, propelled by a favorable combination of political recognition and a substantial analyst upgrade that amplified gains across the semiconductor sector.
During a Friday rally held in Suffern, New York, President Trump specifically mentioned Micron by name. “Micron, boy Micron’s great, they’re investing hundreds of billions,” the president remarked. This direct acknowledgment helped distinguish MU from the general semiconductor sector rally.
Micron has pledged to deploy up to $100 billion throughout a 20-year timeframe to construct America’s largest semiconductor manufacturing facility in Clay, New York, situated north of Syracuse. Construction commenced earlier this year, with initial production targeted for 2030.
The chipmaker’s comprehensive domestic investment strategy totals $200 billion, encompassing both expanded memory production capacity and research initiatives.
UBS Delivers Dramatic Upgrade
The more significant catalyst on Wall Street Tuesday emerged from UBS analyst Timothy Arcuri, who elevated his MU price objective to $1,625 from $535—more than tripling the previous forecast.
The rationale: extended supply contracts have now been established throughout much of the memory sector. Approximately 30% of industry-wide DDR shipment volumes are scheduled to be secured at prices marginally below current market rates.
These arrangements span three to five years, featuring committed volume guarantees and semi-fixed pricing structures. UBS indicated this allows Micron to “exchange some immediate revenue for clearer demand outlook and more stable earnings patterns.”
The investment bank boosted its earnings per share projections to $155, $167, and $117 for calendar years 2027, 2028, and 2029, respectively, compared to earlier forecasts of $133, $122, and $77.
UBS further anticipates Micron will deliver over $400 billion in free cash flow during this timeframe, with earnings per share remaining “consistently above $100 throughout” even under assumptions of a moderate memory market decline in 2029.
Arcuri additionally observed he sees “no reason why MU should trade a whole lot differently than NVDA in terms of P/E.”
Cloud hyperscalers have already secured roughly 60% to 70% of industry server DDR5 volumes through these enhanced multi-year agreements, providing Micron with assured demand for a substantial portion of its premium products.
Additional Analyst Perspective
Mizuho separately reaffirmed its Outperform rating alongside an $800 price target on Tuesday, maintaining MU among its Top Pick designations.
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 finalized a preliminary bonus compensation agreement with union representatives last week, preventing a possible work stoppage, though employee ratification remains pending.
Micron stock has appreciated 163% year-to-date in 2025 and 704% over the trailing 12-month period as of Friday’s market close.
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