Shares of chipmaker Micron Technology (MU) rallied 10.9% in pre-market trading today and are up 7.6% at the time of writing. UBS’ top analyst Timothy Arcuri raised his price target from $510 to $535 (41.7% upside), while maintaining his Buy rating. He highlighted that Micron is capitalizing on a rare memory super-cycle fueled by explosive AI data center demand for high-bandwidth memory (HBM).
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New trading tool for NVDA bearsMicron designs and manufactures semiconductors, with a core focus on DRAM (used in servers, PCs, and AI applications), NAND flash (for SSDs and mobile devices), and storage solutions such as SSDs. Despite beating Q2 FY26 sales and earnings estimates last month, Micron shares plunged amid memory chip shortages and pricing pressures. Analysts, however, remain bullish on the sector’s long-term outlook.
Arcuri is a five-star analyst on TipRanks, ranking #4 out of 12,128 analysts tracked. He boasts a 73% success rate and an impressive average return per rating of 40.0%.
Memory Market Is in a Rare Super-Cycle
Arcuri remains bullish despite negative sentiment in the memory sector. This follows Micron’s recent earnings guidance, which flagged lower-than-expected gross margins from softening demand and pricing pressures in late 2025.
However, Arcuri’s fresh industry checks with suppliers, manufacturers, and customers revealed continued strengthening in both DRAM and NAND prices. He views the memory market in a rare “super-cycle.” Key drivers include explosive AI data center demand, especially HBM, for Nvidia (NVDA) GPUs, smartphone recovery, and enterprise storage needs.
This upswing should “defy traditional analytical norms.” As a result, Arcuri believes that MU’s valuation multiples could stay elevated longer than in typical cycles.
Is Micron Stock a Good Buy Right Now?
Wall Street remains optimistic about Micron’s long-term outlook. On TipRanks, MU has a Strong Buy consensus rating based on 25 Buys and three Hold ratings. The average Micron price target of $543.13 implies 43.8% upside potential from current levels. Year-to-date, MU shares have surged 32.3%.
