Overview
- Micron shares rose about 11% in pre-market trading after UBS analyst Timothy Arcuri raised his price target to $535 and kept a Buy rating.
- Arcuri said high-bandwidth memory, the stacked chips used to feed AI accelerators, is in rapid demand and could push Micron’s gross margin above 80%.
- He highlighted five-year strategic customer agreements that he believes can support 40%–50% through-cycle margins and lift return on equity above 20%.
- Analyst sentiment remains upbeat with a Strong Buy consensus and an average price target near $543 based on TipRanks data.
- In March, Micron raised its quarterly dividend 30% to 15 cents per share, with a projected 2026 payout ratio below 2%.