5-star analyst raises Micron stock price target
Micron (MU) stock has gained about 209.61% year to date, at the time of writing, Tuesday morning, May 26, according to Yahoo Finance. Meanwhile, the SPDR S&P 500 index (SPY) is up about 10% in the same period.
The company is part of the semiconductor rally driven by the AI boom. Recent positive factors that boosted it include hyperscalers increasing their capital expenditure plans and Intel's Q1 earnings, which have boosted confidence in the semiconductor sector.
Bank of America recently raised its 2030 AI data center systems total addressable market (TAM) outlook, which is certainly another positive for Micron.
On May 22, Micron confirmed that it had started 1-alpha (1α) DRAM manufacturing at its Manassas, Virginia, fab, indicating its U.S. manufacturing expansion is progressing well.
This is very important news for investors. "Smaller transistors switch faster, use less energy and, through pure economy of scale, are cheaper to make," Micron's blog about 1α explained.
It is easy to see that cheaper-to-make memory means higher profit margins.
It is currently trading at $881.97, up 17.44%, at the time of writing. Micron briefly hit a price of $891.27, which is higher than $886.74, at which the stock market cap would be at $1 trillion, according to Yahoo Finance.
Today's surge comes after President Donald Trump praised Micron at a rally in New York on May 22.
"Micron, boy Micron's great, they're investing hundreds of billions," the president said, according to Yahoo Finance.
Increased momentum comes following UBS analyst Timothy Arcuri resetting his price target, TipRanks noted.
UBS raises Micron stock price target
Arcuri is one of the analysts with the best track records out there. His TipRanks profile shows he ranks second out of 12,266 Wall Street analysts, with an 81% success rate and an average return of 56.6%.
The analyst believes Micron will have stable future earnings, as long-term supply agreements are now being locked in across a major part of the industry. He estimates that the company will have more than $400 billion in free cash flow between 2027 and 2029.
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Arcuri raised his EPS estimates for 2027, 2028, and 2029 to $155, $167, and $117, respectively, from $133, $122, and $77, respectively. He reiterated a buy rating for Micron stock and raised his price target to $1,625 from $535.
According to TipRanks, 27 of the 30 analysts covering MU stock rate it a buy. Three give a hold rating. The average price target is $697.78.
Bank of America believes MU is trading below its historical PE multiples
In a research note from May 25, shared with me, Bank of America analyst Vivek Arya and his team updated their opinion on Micron stock.
Arya ranks 86th, with a 64% success rate and an average return of 27.6%.
Analysts said they believe that the AI capex cycle is sustainable, thanks to:
- Frontier model developers reporting revenue acceleration
- Contracted cloud seeing backlog growth
- Token-intensive agentic workloads, which are increasing compute demand
The team estimates that the TAM for AI data center systems will grow to $1.7 trillion or more by 2030, up from $264 billion in 2025.
Arya wrote: "Memory continues to be the 'pain trade' but worth staying engaged at least as long as [quarter-over-quarter] DRAM memory pricing [continues] to expand."
He said he believes Micron is trading below a 1x price-to-earnings-to-growth ratio and its historical price-to-earnings multiples.
Arya reiterated a buy rating for Micron stock and the target price of $950.
Analysts noted downside risk factors for Micron:
- Larger-than-expected memory average selling price decline
- Greater competition from China's newcomers
- Share loss to large competitors
- Softening of demand across major end markets such as data center, smartphones, or PCs
Related: 5-star analysts reset Marvell stock price target ahead of earnings
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This story was originally published May 26, 2026 at 2:43 PM.