On May 26, the memory giant Micron (NASDAQ: MU) received a 203% increase to its 12-month price target from UBS’ Timothy Arcuri.
Indeed, the Wall Street analyst highlighted that the recent developments in terms of the artificial intelligence (AI) boom and ‘the structural changes AI has driven to the entire memory complex’ could allow MU stock stock to continue being re-rated higher
The note also featured an updated forecast for DRAM undersupply – now extended from the final quarter (Q4) of 2027 to around Q2 2028 – and NAND undersupply – extended from Q3 2027 to Q4 of the same year. UBS also estimated that Micron could keep EPS comfortably above $100 through the period, even under a moderate downturn scenario.
Under the circumstances, Arcuri retained his previous ‘Buy’ rating for MU stock but implemented a 203% 12-month price target increase from $535 to $1,625.
The new forecast indicates Micron shares are now expected to rise 116.38% in the coming 52 weeks after soaring 679% to $751 over the previous year.
Wall Street sets Micron stock price target for the next 12 months
Zooming out offers some insight into the speed of MU equity’s rally, considering that it is, despite being overall considered a ‘Strong Buy,’ it is, on average, expected to decline 7.09% to $697.78 in the coming 12 months.
Such a balance can be attributed to rating aggregates such as the stock analysis platform TipRanks taking all notes issued within the previous three months into account.
Micron shares were, despite several rallies and pullbacks, effectively flat between January 2 and March 30, with the subsequent trading – which featured a 133% upsurge – being responsible for the bulk of the 138% year-to-date (YTD) rise.
Nonetheless, UBS’ latest forecast stands out as it represents the Street high at press time on May 26.
Even if only the ongoing month’s revisions are accounted for, only three out of eight notes – once Timothy Arcuri’s estimates are disregarded – foresee Micron reaching or exceeding $1,000: the ones issued by Melius Research, Deutsche Bank, and D.A. Davidson.
Lastly, UBS’ latest price target revision also proved remarkable as it drove Micron stock more than 8% higher in the Tuesday pre-market.
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