UBS Lifts Micron Price Target to $1,625, Sparks 18% Stock Rally
UBS•UBS raised its Micron price target to $1,625 from $535, projecting an 18% stock surge as AI-driven long-term DDR5 agreements secure 60%–70% of server demand. The bank cited multi-year fixed-volume contracts to reduce earnings volatility and predicted lasting industry growth.
1. UBS Price Target Hike
UBS lifted Micron’s price target from $535 to $1,625, marking a 204% increase, and noted the stock surged nearly 18% on the upgrade. Analysts highlighted this as one of the most aggressive calls on Wall Street, underscoring renewed confidence in Micron’s earnings trajectory driven by AI infrastructure spending.
2. Long-Term Supply Agreements
The upgrade is grounded in the rise of multi-year, fixed-volume memory contracts, which UBS estimates now cover 60%–70% of server DDR5 demand. These agreements are expected to smooth Micron’s revenue streams, reducing the industry’s historic boom-and-bust cycles.
3. AI Memory Demand Forecast
Hyperscale data-center operators are securing advanced memory supplies to fuel expanding AI workloads, bolstering structural demand. UBS projects sustained AI-related chip purchases will underpin Micron’s earnings growth and deliver more predictable financial results.
