Key Takeaways
- Shares of Micron (MU) climbed 6% during premarket hours on Tuesday, reaching $798.37.
- At a New York event, President Trump commended Micron, describing the chipmaker as “great.”
- UBS dramatically increased its MU price target to $1,625, up from a previous $535 target.
- The firm projects Micron will produce more than $400 billion in free cash flow by 2029.
- Mizuho maintained its Outperform stance, preserving MU as a Top Pick with an $800 price objective.
Shares of Micron Technology (MU) experienced a 6% surge in premarket activity Tuesday, reaching $798.37, propelled by a combination of executive-level recognition from the White House and a dramatically elevated Wall Street valuation from a major investment bank during an already positive session for semiconductor stocks.
During a Friday rally held in Suffern, New York, President Trump specifically mentioned Micron by name. “Micron, boy Micron’s great, they’re investing hundreds of billions,” the president remarked. This direct endorsement helped distinguish MU from the general semiconductor sector rally.
Micron has pledged to deploy up to $100 billion across a 20-year timeframe to construct America’s largest semiconductor manufacturing facility in Clay, New York, situated north of Syracuse. The groundbreaking ceremony took place earlier this year, with operations anticipated to commence in 2030.
The chipmaker’s comprehensive domestic investment strategy totals $200 billion, encompassing both memory chip production expansion and cutting-edge research initiatives.
UBS Delivers Massive Valuation Upgrade
The more significant catalyst from the investment community arrived Tuesday when UBS analyst Timothy Arcuri elevated his price objective on MU to $1,625 from $535—more than tripling the previous target.
The rationale: extended supply contracts have now been established throughout the majority of the memory semiconductor sector. Approximately 30% of DDR volumes across the industry are expected to be secured at price points marginally below existing market rates.
These contracts span three to five years, featuring committed volume guarantees and partially locked-in pricing structures. UBS indicated this strategy allows Micron to “exchange some immediate revenue potential for enhanced demand predictability and more consistent earnings performance.”
The bank elevated its earnings per share projections to $155, $167, and $117 for calendar years 2027, 2028, and 2029, respectively, compared with previous forecasts of $133, $122, and $77.
UBS further anticipates Micron will produce in excess of $400 billion in free cash flow during this timeframe, with EPS maintaining levels “comfortably above $100 throughout the period” even factoring in a moderate memory market decline in 2029.
Arcuri also observed that he perceives “no reason why MU should trade a whole lot differently than NVDA in terms of P/E.”
Major cloud service providers have already secured roughly 60% to 70% of industry server DDR5 volumes through these enhanced contractual agreements, providing Micron with guaranteed orders for a substantial portion of its highest-margin products.
Wall Street Perspective
Mizuho independently reaffirmed its Outperform rating and $800 price target on Tuesday, continuing to designate MU as a Top Pick.
Analyst Vijay Rakesh stated “memory remains the AI backbone, with demand outstripping supply through 2026-27.” He emphasized that there is “no clear line of sight on when the supply-demand imbalance could end.”
South Korean competitors also experienced gains Tuesday. SK Hynix advanced 5.7% while Samsung climbed 2.2% during local market hours. Samsung additionally secured a preliminary bonus compensation arrangement with union representatives last week, preventing a possible work stoppage, though employee ratification remains outstanding.
Micron stock has appreciated 163% in 2025 and an extraordinary 704% during the trailing 12 months through Friday’s closing bell.
