Markets MU MAY 28, 2026

Micron tops $1 trillion as UBS triples target to $1,625, calling AI memory the next Nvidia

MU jumped 19% Tuesday after UBS analyst Timothy Arcuri raised his target from $535 to $1,625, projecting $400B in cumulative free cash flow through 2029.

BY HENLEY MARRAST · MARKETS DESK

Micron Technology closed above a $1 trillion market capitalization for the first time on Tuesday, after UBS analyst Timothy Arcuri tripled his price target on the stock from $535 to $1,625 and framed the memory maker as structurally the next Nvidia. Shares jumped 19% to clear $886.74, the level required to cross the trillion-dollar line, and pushed past $920 on Wednesday. MU has more than tripled year-to-date and is up roughly 840% over the past twelve months.

Arcuri’s $1,625 number is now the Street high among the 46 analysts covering MU. It implies a market value near $1.8 trillion, which would slot Micron seventh among US public companies, behind Broadcom and ahead of Tesla. At Tuesday’s close the chipmaker ranked 11th, sandwiched between Eli Lilly and Walmart.

The bull case rests on a memory cycle that no longer looks like a cycle. UBS models calendar-2027 EPS of $155, rising to $167 in 2028 and settling at $117 in 2029, generating cumulative free cash flow above $400 billion across the three years. Mizuho’s Vijay Rakesh anchors the same thesis to supply discipline: 60% to 70% of industry server DDR5 volumes are now locked into long-term contracts, the kind of visibility memory investors have historically been told not to expect.

The fiscal Q2 numbers underwrite the narrative. Revenue of $23.86 billion was nearly triple the $8.05 billion booked a year earlier, GAAP net income hit $13.79 billion, and diluted EPS landed at $12.07. Management guided fiscal Q3 to $33.5 billion at the midpoint, plus or minus $750 million, with gross margins around 81%. That single quarter of guidance exceeds Micron’s full-year revenue for every year through fiscal 2024.

Capex was raised to over $25 billion from $20 billion, the dividend went up 30%, and the company is pointing investors toward an HBM total addressable market of roughly $100 billion by 2028, with HBM4 the next inflection.

The trade is no longer “memory recovers.” It’s that AI accelerators don’t run without HBM, and HBM is now a duopoly-adjacent business priced like one.

Sources

About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.