Micron stock surges on AI demand and UBS target hike
6.6 Markets Micron stock jumped up to 8.4% premarket after Trump praise, a UBS price target hike to $1,625, and strong AI-driven demand for high-bandwidth memory, with analysts citing robust fundamentals.
Micron Technology (MU) stock surged between 6% and 8.4% in premarket trading, driven by strong investor demand and positive analyst sentiment. The rally was fueled by several factors: public praise from President Trump, a dramatic price target hike from UBS to $1,625, and robust fundamentals such as accelerating revenues, high gross margins, and net profit growth. Analysts highlighted Micron's unique position as one of only three global suppliers capable of manufacturing high-bandwidth memory (HBM) at scale—a component in high demand for AI workloads. The company’s entire HBM production capacity is reportedly sold out, and long-term supply agreements are expected to provide more predictable revenue and improved margins. Market observers noted that Micron is no longer trading like a traditional cyclical chip stock, with its valuation still considered low relative to sector peers. While risks remain if AI-driven memory demand cools or if industry-wide supply and pricing rebalance, current momentum and technical catalysts suggest further upside potential.
