Micron Jumps 12% After Price Target Raise From $535 to $1,625: Here’s What’s Driving Wall Street’s Most Bullish Target

Shares of Micron Technology (NASDAQ:MU | MU Price Prediction) are up 12% to $843 after UBS raised its price target on MU stock to $1,625 from $535. The firm maintained its Buy rating, and the new figure now stands as the most bullish target on Wall Street.

The magnitude of the raise is the story. UBS analyst Timothy Arcuri pushed his Micron stock price target well above the prior Wall Street high, as 39 of 44 firms already rate MU stock a Buy or higher, with 4 at Hold and 1 at Sell.

The new target implies that Micron stock should double from current levels. Retail sentiment around the stock read as neutral over the last 24 hours, with some users speculating about a future dividend increase or stock split.

UBS Pitches a Multiple Rerating

UBS’s thesis hinges on long-term memory supply agreements that the firm expects to lock in pricing and demand visibility across much of the industry. Arcuri’s note projects Micron’s earnings per share (EPS) will exceed $100 at least until 2029.

In the research note, UBS asserted, “We believe the market will start to put a more ‘normal’ multiple on the stock, and MU will continue to re-rate higher as more details emerge about the structural changes AI has driven to the entire memory complex.” That framing positions the upgrade as a multiple expansion call rather than a simple numbers raise.

The argument leans on the idea that AI-driven structural changes are improving the durability and stability of the memory market. Investors who have watched prior memory cycles whip Micron’s earnings around will recognize how aggressive that claim is.

Manassas Milestone Adds a Tailwind

On Friday, Micron’s Manassas, Virginia facility began producing 1-alpha DRAM, which the company describes as the most advanced memory ever produced in the United States. President Trump praised the company that day with the words “Micron is great.”

That milestone aligns with the political and industrial narrative UBS is leaning on. Micron now has fresh on-shore capacity and visible government backing at a moment when AI supply chains are being scrutinized.

A Year of Outperformance

Even before today’s move, MU stock had run roughly eightfold over the past year, outperforming the S&P 500, the VanEck Semiconductor ETF (NASDAQ:SMH), and the iShares Semiconductor ETF (NASDAQ:SOXX). Micron’s fiscal Q1 2026 revenue came in at $13.64 billion, up 57% year over year, with non-GAAP EPS of $4.78 beating the $3.94 consensus.

Moreover, Micron’s Cloud Memory Business Unit nearly doubled to $5.28 billion in the quarter at 66% gross margins. The company’s Q2 FY2026 guidance calls for revenue of $18.7 billion plus or minus $400 million and non-GAAP EPS of $8.42 plus or minus $0.20. Details are available in the company’s 8-K filing with the SEC.

Micron CEO Sanjay Mehrotra declared, “Micron’s technology leadership, differentiated product portfolio, and strong operational execution position us as an essential AI enabler.” The order book and the HBM franchise are the two figures the bull case rides on.

What to Watch

The bar for Micron is now meaningfully higher. Memory cycles have surprised to the downside before, and the durability of long-term supply agreements remains unproven outside management commentary. Short interest in MU stock has reportedly been rising even as analyst targets climb, and recent insider activity skews toward selling.

Prudent investors might keep their Micron share position sizing measured given how much good news the chart already reflects. Watch for whether other sell-side firms follow UBS’s lead with their own MU stock price target hikes, and whether Micron’s next quarterly report includes concrete disclosure on multi-year supply contracts. That’s the moment the rerating thesis could either firm up or start to wobble.