Micron Stock Surges 20%, Target Price Tripled

Shares of memory semiconductor firm Micron Technology jumped nearly 20% on May 26 (local time), influenced by financial information provider UBS significantly raising Micron's target price to three times its previous level. UBS increased its price target for Micron Technology from $535 to $1,625. UBS analyst Timothy Arcuri noted that AI has completely reshaped the memory market structure, stating that Micron should be re-evaluated as a core AI infrastructure company, rather than merely a cyclical player.

Micron is currently meeting only 50-65% of its major clients' medium-term demand for High Bandwidth Memory (HBM), and its next-generation HBM4 supply is completely sold out. A recently signed first five-year strategic long-term supply contract has locked in a portion of the price, enhancing earnings stability and predictability.

Micron's stock surge also impacted other semiconductor-related stocks. SanDisk soared over 9%, semiconductor equipment makers Lam Research rose 5.50%, and Applied Materials climbed 5%. AI semiconductor stocks AMD and Broadcom also advanced 7.70% and 2%, respectively. In the domestic market, leveraged ETFs related to Samsung Electronics and SK Hynix recorded high gains.