On May 27, Direxion 2x Bull MU ETF rose 6.49% in pre-market trading, trading at $805.82/share, with trading volume of $57.654 million. The leveraged ETF continued to benefit from a historic rally in its underlying stock, Micron Technology.
On the news front, UBS analyst Timothy Arcuri dramatically raised Micron Technology's 12-month target price from $535 to $1,625, the highest on Wall Street, while maintaining a Buy rating. The target implies a potential market capitalization of $1.8 trillion. The core thesis centers on structural changes in the memory industry, where new enhanced long-term agreements (LTAs) featuring partially fixed pricing frameworks and 3-5 year durations are transforming memory from a cyclical to a structural growth business.
UBS raised Micron's adjusted EPS estimates by 8-25% for fiscal years 2026-2028, projecting $63.74, $142.23, and $169.64 respectively, with EPS expected to remain above $100 through 2027-2029. The analyst noted that Micron's P/E multiple should not differ significantly from NVIDIA's, applying approximately 15x forward earnings. Hyperscalers have reportedly secured 60-70% of industry Server DDR5 volumes under these enhanced LTAs, providing improved earnings visibility. Micron's stock surged over 17% on May 26, with its market cap crossing $1 trillion for the first time.
(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.)
Comments