On May 27, Micron Technology rose 4.57% in pre-market trading, trading at $935.99/share, with trading volume of $319 million. The stock continues its upward momentum after surging over 17% in the prior session when its market capitalization first breached the $1 trillion milestone.
The move is driven by UBS Securities reiterating its bullish thesis on Micron, emphasizing that new enhanced Long-Term Agreements (LTAs) in the memory industry feature longer durations, fixed volume commitments, and a partially fixed pricing framework. Hyperscalers have secured approximately 60% to 70% of the industry's Server DDR5 volumes under these agreements, providing Micron with significantly improved earnings visibility and a smoother revenue profile. UBS raised its target price from $535 to $1,625 — the highest on Wall Street — implying a market capitalization of $1.8 trillion, as the firm expects the stock to re-rate higher once structural changes in the memory complex become clearer and cross-cycle return on invested capital improves.
Additionally, Micron warned at a recent tech summit that supply constraints across HBM, DRAM, and NAND are expected to persist beyond this year due to structural bottlenecks in capacity expansion.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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