Micron Stock Price Forecast

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Micron Stock Price Forecast

UBS Forecasts 80% Upside In Micron Stock Price

According to UBS, the Micron stock price can gain another 80%. Earlier, UBS had set a target of $535 for the Micron stock. But now, they have set a new price target of $1625.

The Micron stock gained 850% upside last year. That's pretty impressive, as such kind of gains are pretty much unheard of from a big company like this.

Micron Stock Price Can Jump To $1625

If the Micron stock price really reaches the target, it would mean a gain of 80% from the current levels. The UBS analyst added that Micron has made long-term supply agreements with big hyperscalers. So, these agreements will directly translate to strong revenue growth for the company.

UBS added that Micron's EPS will rise to $155 in 2027. For the years 2028 and 2029, the EPS will be $167 and $117, respectively.

UBS has set the new target based on the next 12-month earnings. They added that there's no reason for Micron to behave differently than Nvidia when it comes to the P/E ratio.

The overall demand for memory is very high, and most of it is coming from hyperscalers. This means Micron can earn higher profit from its products.

Also, hyperscalers are making long-term supply contracts. This means the memory demand will stay consistent for the next few years.

One key risk to this whole forecast is that memory demand is very cyclical. So, once the demand slows down or the supply catches up, things will change for Micron.

Also, more companies might join the memory market after looking at the huge profits made by Micron. So, there's also a risk of higher competition in the memory market.

The bottom line is that things are looking really good for the Micron stock. However, cautious investors might want to look elsewhere. The chart of Micron stock looks parabolic, and gains of 850% in one year are not normal.

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