UBS Lifts Micron Price Target to $1,625, Forecasts 116% Upside on AI Demand
AVGO•UBS raised Micron’s price target to $1,625 from $535, implying about 116% upside and a potential $1.8 trillion market value that would rank it seventh among U.S. firms. The analyst cited new three-to-five-year contracts with fixed volumes and partially fixed pricing to stabilize revenue.
1. UBS triples Micron price target
UBS analyst Timothy Arcuri increased the price target from $535 to $1,625, representing an implied 116% gain from the prior close. If realized, Micron’s market capitalization would reach approximately $1.8 trillion, placing it among the top seven U.S. public companies by value.
2. New contract structure
The upgrade reflects Micron’s shift to three-to-five-year agreements that include fixed volume commitments and partially fixed pricing, replacing previous solely volume-based deals. These longer-term contracts aim to smooth out revenue and earnings volatility, offering clearer demand visibility for investors.
3. Market impact and risks
Micron shares set a record intraday high, marking their 30th such milestone this year, and lifted the Philadelphia Semiconductor Index to its own record. While 43 of 46 analysts maintain buy or strong buy ratings, a slowdown in high-bandwidth memory demand could push the stock down to $250.
