Micron Technology stock surged 6% in pre-market trading after UBS issued a sweeping analyst upgrade. UBS more than tripled its price target to $1,625 from $535.
UBS cited long-term supply agreements and the durable earnings power of the AI memory supercycle. Micron can only meet 50%-67% of customer demand for HBM and DRAM chips.
CEO Sanjay Mehrotra described the supply gap as structural. The company is ramping up HBM4 production for NVIDIA applications.
The upgraded price target, combined with strong financials and a risk-on macro environment, has pushed the stock toward its 52-week high of $818.67.
