UBS has increased its price target for Micron Technology stock to $475, citing anticipated benefits from shortages in the memory chip market, according to an analyst note released Monday.
The revised target, up from $450, accompanies a maintained “Buy” rating for the Boise, Idaho-based semiconductor company. Micron’s stock closed Monday at $412.37, despite already demonstrating significant growth – a 342% increase over the past year, though InvestingPro analysis suggests shares are currently slightly overvalued.
Analyst Timothy Arcuri of UBS indicated that Micron is well-positioned to capitalize on the emerging AI-driven demand for memory, which is contributing to rising prices. His assessment, based on recent market checks, points to strengthening prices for both DRAM (dynamic random-access memory) and NAND (not AND) chips. These shortages are projected to persist through 2027-2028, driven by limitations in fabrication facilities, delays in equipment delivery, and a scarcity of qualified engineers.
Despite the positive outlook, analysts do not anticipate any fundamental deterioration in the broader memory-chip sector. The increased price target comes as Micron and its competitors navigate a complex supply chain environment and increasing demand from the artificial intelligence sector.
