UBS: Micron (MU) Could More Than Double From Here

Micron (MU) stock jumped by double digits on Tuesday after a UBS analyst's newly raised price target implied that the chipmaker could become a $1.8 trillion company whose shares could more than double over the next year or so.

UBS analyst Timothy Arcuri, who rates shares at Buy, cited structural changes to the memory industry and a reset of Micron's valuation in raising MU stock's price target to $1,625 from $535 previously—what would be a 116% run higher from last Friday's closing price.

"Our supply chain work on 'Long Term Agreements (LTAs) across the memory industry' [another UBS report] suggests that up to 30% of DDR volumes industry-wide will be soon locked in at pricing that is just slightly below current levels, and these agreements will allow MU to trade some near-term revenue for demand visibility and a smoother earnings profile," Arcuri writes.

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As a result, UBS is raising its earnings per share (EPS) estimates across the next three calendar years:

• C2027: To $155 per share from $133 previously
• C2028: To $167 per share from $122 previously
• C2027: To $117 per share from $77 previously

He adds that because investors typically reward stocks for their durability and visibility, Micron's ability to keep earnings above $100 per share would represent the "lasting, structural change that should support a shift toward a broader semi multiple."

Arcuri notes that the new price target would represent a roughly 15 forward price-to-earning (P/E) multiple, adding that he sees “no reason why MU should trade a whole lot differently than Nvidia (NVDA) in terms of P/E.”

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More Analyst Thoughts on Micron Stock

The Wall Street research community as a whole is extremely bullish on Micron shares, with 39 covering analysts calling MU stock a Buy, versus just four Holds and one Sell. But UBS's price target is a considerable outlier—indeed, it's currently the highest PT on the stock. The average target on Micron's stock is $640 per share, which would imply 15% downside from last Friday's closing price (and considerably more from where MU was trading early Tuesday).

But they're generally in agreement that earnings should explode from here, with average annual earnings growth estimates for the long term (the next three to five years) coming in around 145%.

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Mizuho Financial Group also sounded off on Micron shares Tuesday, reiterating its Outperform rating and maintaining an $800 price target (7% upside).

“We believe there’s no clear line of sight on when the supply- demand imbalance could end as demand durability sees secular long-term tailwinds with DRAM/NAND as key AI enablers,” Mizuho analyst Vijay Rakesh writes about Micron, which also maintained its "Top Pick" status at the research firm.

In mid-May, independent research firm CFRA (Buy) raised its price target to $900 (20% upside) from $500 previously. 

"We remain confident that MU's financial position has vastly improved," CFRA analyst Angelo Zino wrote, adding that the firm expects Micron to generate more than $50 billion in free cash flow during calendar 2026, then more than $80 billion next year. "We expect pricing to remain resilient well into 2027, fueled by higher AI capex spend and the greater wafer capacity needs for high-bandwidth memory."

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A BNP Paribas Equity Research analyst last week expressed optimism about the memory industry broadly. "Long-term, we believe multi-year supply agreements support volume assurance with favorable margins and marks a turning point in transforming a historically cyclical industry into one of durable, profitable growth," senior analyst Karl Ackerman wrote. 

He believes Micron could report May-quarter revenues of $41.7 billion and earnings of $25.23 per share, and provide August-quarter revenue and earnings guidance of $35.2 billion and $33.48 per share, respectively. Ackerman, who rates the stock at Outperform, has a $900 price target on MU stock.

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