Micron Technology shares rise 8% premarket after UBS raises price target to $1,625

UBS just tripled down on Micron Technology. The investment bank raised its price target on MU shares from $535 to $1,625, representing the most bullish call on Wall Street for the memory chipmaker. Micron shares responded accordingly, surging as much as 14% in premarket trading on May 26.

With the stock previously hovering around $800, UBS’s new target implies roughly 100% upside from recent levels.

What’s driving the upgrade

The short answer: artificial intelligence is eating the world, and it’s hungry for memory. Specifically, high-bandwidth memory, or HBM, the specialized chips that power the data centers training and running AI models. Micron is one of only three companies on the planet that can manufacture this stuff at scale, alongside Samsung and SK Hynix.

UBS’s revision reflects what it sees as stronger-than-expected demand projections for HBM and improved pricing power across the broader memory market.

This isn’t the first time UBS has bumped its Micron target upward recently. The bank’s analyst revisions have been a steady escalator, moving from $400 to $450, then $510 in April 2026, followed by $535, and now this leap to $1,625.

Micron’s recent performance backs the thesis

Micron has already been delivering. The company has posted multiple record quarterly earnings recently, fueled by surging sales of memory for cloud and AI applications. MU shares have already climbed nearly 200% year-to-date.

Cloud providers like Amazon, Microsoft, and Google are locked in an arms race to build out AI infrastructure. Every new data center needs enormous quantities of high-bandwidth memory, and the supply chain for HBM is constrained enough that manufacturers hold real pricing leverage.

What this means for investors

UBS now holds the most aggressive call on the Street. When the highest target is double the current price, it signals that at least some sophisticated institutional research teams believe the market is still underpricing the AI memory opportunity.

For crypto-native investors, there’s an additional angle worth noting. A tokenized version of Micron stock called MUon exists on the Ondo platform, offering onchain exposure to MU’s price movements.

The 8% to 14% premarket move suggests institutional investors largely agree with UBS’s directional call, even if they’re not ready to pencil in $1,625 just yet.

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