TLDR
- Micron (MU) stock rose 6% in premarket trading to $798.37 on Tuesday.
- President Trump praised Micron at a New York rally, calling the company “great.”
- UBS more than tripled its price target on MU to $1,625 from $535.
- UBS expects Micron to generate over $400 billion in free cash flow through 2029.
- Mizuho reiterated its Outperform rating, keeping MU as a Top Pick with an $800 target.
Micron Technology (MU) stock was up 6% in premarket trading on Tuesday, hitting $798.37, after a combination of presidential praise and a massive Wall Street price target hike gave the stock an extra push during an already strong day for chip names.
President Trump name-checked Micron at a rally in Suffern, New York on Friday. “Micron, boy Micron’s great, they’re investing hundreds of billions,” he said. The comment helped separate MU from broader chip gains.
Micron has committed to investing up to $100 billion over 20 years to build the largest semiconductor factory in the U.S., located in Clay, New York, north of Syracuse. Groundbreaking happened earlier this year, with production expected to start in 2030.
The company’s total U.S. investment plan sits at $200 billion, covering both memory manufacturing expansion and research and development.
UBS Triples Price Target
The bigger Wall Street story Tuesday came from UBS analyst Timothy Arcuri, who more than tripled his price target on MU to $1,625 from $535.
The reasoning: long-term supply agreements are now firmly in place across most of the memory industry. Up to 30% of DDR volumes industry-wide are set to be locked in at pricing slightly below current levels.
These deals run three to five years, with fixed volume commitments and partially fixed pricing. UBS said this lets Micron “trade some near-term revenue for demand visibility and a smoother earnings profile.”
The firm raised its earnings per share estimates to $155, $167, and $117 for calendar years 2027, 2028, and 2029, up from prior estimates of $133, $122, and $77.
UBS also expects Micron to generate over $400 billion in free cash flow across that same stretch, with EPS staying “comfortably above $100 throughout the period” even assuming a moderate memory downcycle in 2029.
Arcuri also noted he sees “no reason why MU should trade a whole lot differently than NVDA in terms of P/E.”
Hyperscalers have already locked in approximately 60% to 70% of industry server DDR5 volumes under these enhanced long-term agreements, giving Micron guaranteed demand for a large slice of its most valuable products.
Analyst Sentiment
Mizuho separately reiterated its Outperform rating and $800 price target on Tuesday, keeping MU as a Top Pick.
Analyst Vijay Rakesh said “memory remains the AI backbone, with demand outstripping supply through 2026-27.” He added that there is “no clear line of sight on when the supply-demand imbalance could end.”
South Korean rivals also moved higher Tuesday. SK Hynix rose 5.7% and Samsung gained 2.2% in local trading. Samsung also reached a tentative bonus-pay agreement with union leaders last week, averting a potential strike, though a worker vote is still pending.
Micron stock is up 163% in 2025 and 704% over the past 12 months as of last Friday’s close.
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