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Source: Google Finance A game-changer for Micron <\/p>\nNasdaq memory stock Micron (NASDAQ: MU) has had an incredible run. Over the last year, it\u2019s soared around 850%. Can it keep rising?<\/p>\n
Analysts at UBS clearly think so \u2013 check out their latest price target.<\/p>\n
A massive increase <\/p>\n
UBS\u2019s new price target for Micron is $1,625. That represents a huge increase \u2013 their old target was just $535 (that kind of increase is almost unheard of).<\/p>\n
It also represents a huge potential gain from here. If it was to come to fruition, investors could be looking at a gain of almost 80%.<\/p>\n
Source: Google Finance A game-changer for Micron <\/p>\n
In its research note, UBS analyst Timothy Arcuri said that long-term supply agreements with hyperscalers are now firmly in place across most of the memory industry. His view is that these long-term agreements will structurally transform Micron\u2019s earnings profile.<\/p>\n
Looking ahead, UBS now expects the memory company to generate earnings per share of $155, $167, and $117 for calendar years 2027, 2028 and 2029 respectively, up from previous estimates of $133, $122, and $77.<\/p>\n
The new $1,625 price target is based on around 15 times next-12-month earnings, with Arcuri noting he sees \u201cno reason why Micron should trade a whole lot differently than Nvidia in terms of P\/E\u201c.<\/p>\n
Is there an investment opportunity here? <\/p>\n
Should investors consider buying Micron stock given this bullish sentiment? That\u2019s hard to say \u2013 this is a bit of a tricky one.<\/p>\n
On one hand, demand for memory (from hyperscalers) is sky-high right now. This is allowing Micron and other memory companies to charge significantly higher prices for their products, which is leading to sharply higher revenues and earnings.<\/p>\n
Meanwhile, the memory companies are locking in long-term supply agreements as mentioned above. This is a major development because historically, memory demand has been very up and down (in 2023 Micron\u2019s revenue fell around 50%).<\/p>\n
Another positive is the valuation, which is still low despite the enormous share price increase here over the last year. If we take that 2027 earnings figure above, we get a price-to-earnings (P\/E) of around six!<\/p>\n
On the other hand, there\u2019s a chance that cyclicality could return to the memory chip market. At some stage in the next few years, we could see demand from hyperscalers fall as AI systems become more efficient.<\/p>\n
We could also see more companies enter the market given the huge profits that Micron and others are making right now. This risk shouldn\u2019t be ignored \u2013 unlike GPUs, memory chips tend to be commoditised meaning that they are all relatively similar.<\/p>\n
One other risk is the fact that the stock is up 850% over the last year and the chart is parabolic. I\u2019ve seen plenty of moves like this in 25 years of investing and they often end badly.<\/p>\n
Weighing up the bull case and the bear case, I\u2019m going to sit on the fence and take a neutral view. A small position here could be worth considering if one is comfortable with the risks but I do see this stock as very risky after its huge move higher.<\/p>\n
In my view, there are better growth stocks to consider buying today.<\/p>\n
Should you invest \u00a35,000 in Micron Technology right now? <\/p>\n
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.<\/p>\n
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Micron Technology made the list?<\/p>\n
See The Six Stocks<\/p>\n
Edward Sheldon owns shares in Nvidia and Nasdaq<\/p>\n
The post Analysts at UBS just set a jaw-dropping price target for Nasdaq stock Micron<\/a> appeared first on The Twelfth Magpie<\/a>.<\/p>\n More reading<\/p>\n Motley Fool UK 2026<\/p>\n","protected":false},"excerpt":{"rendered":"Nasdaq memory stock Micron (NASDAQ: MU) has had an incredible run. Over the last year, it\u2019s soared around…\n","protected":false},"author":2,"featured_media":75513,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[1079,14031,26897,2929,22091,5255,223],"class_list":["post-75512","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-earnings-per-share","tag-micron","tag-micron-stock","tag-nasdaq","tag-supply-agreements","tag-target","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116674002049004580","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/75512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=75512"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/75512\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/75513"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=75512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=75512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=75512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}