UBS triples Micron’s price target on AI demand and long-term supply deals, projecting a near $1.8 trillion valuation within a year.
Micron Technology shares jumped 14.2% in early trading Tuesday after UBS raised its price target to $1,625 from $535, citing stronger AI-driven demand and long-term supply agreements. The new target implies a potential market capitalization of nearly $1.8 trillion, up from $846.93 billion at Friday’s close.
The brokerage highlighted industry-wide long-term contracts that lock in volumes and partially fix prices, stabilizing Micron’s historically volatile earnings. These deals are expected to cover a growing share of DRAM supply, reducing pricing swings and improving demand visibility.
UBS argued Micron should trade closer to Nvidia’s valuation multiples due to improved earnings stability and AI-related growth. Hyperscalers are increasingly prioritizing supply assurance over pricing flexibility, supporting the sector’s shift toward long-term agreements.