Micron joins the trillion-dollar club: how high can MU shares fly in 2026?

Micron Technology (MU) was in the spotlight on May 26 as a UBS-driven rally in its shares drove its market cap into the coveted trillion-dollar club.

The unprecedented demand for Micron’s memory chips as hyperscalers continue to build artificial intelligence (AI) infrastructure has already seen MU gain a remarkable 185% this year.

Yet, UBS analysts led by Timothy Arcuri believe Micron stock isn’t out of juice just yet.

Reiterating a “buy” rating, Arcuri more than tripled his price objective on the Boise-headquartered firm this morning to $1,625, indicating potential upside of another 80% from here.

Here’s why UBS is bullish on Micron stock

According to the UBS analyst, Micron is undergoing a structural transformation that alters how it earns, prices, and secures its revenue base.

For decades, memory suppliers operated under short‑cycle, volume‑based offtake agreements that left them brutally exposed to the industry’s historic boom‑and‑bust swings.

But Timothy Arcuri argues that the era has now ended.  

Those legacy contracts are being replaced by “enhanced” longer‑term agreements featuring multi-year durations, strict fixed‑volume obligations, and – most importantly – a “partially fixed pricing framework.”

By locking in both price and volume, Micron is insulating itself from volatility and shifting toward a more predictable earnings profile, he added.

As investors absorb this structural de‑risking, UBS expects MU shares to command a significantly higher multiple over time.

Options data points to upside in MU shares

UBS recommends sticking with Micron shares because the aforementioned LTAs offer “improved visibility into now-committed customer demand” and higher cross-cycle ROIC.

According to Timothy Arcuri, continued robust demand for high bandwidth memory (HBM) could see MU’s cumulative free cash flow hit a whopping $400 billion between 2027 and 2029.

He also expects the firm’s annual earnings per share (EPS) to surpass $100 over the next few years.

Importantly, the derivatives market seems to agree with UBS on Micron Technology.

The upper price on options contracts expiring August 21^st sits at about $1,187 – indicating the stock could rally as much as 33% over the next three months.

Note that MU currently pays a small dividend as well.

How to play Micron at current levels

Taken together, UBS’s call frames Micron as one of the “clearest structural winners” of the global AI build‑out.

The shift to long‑term, partially fixed‑price agreements – combined with surging HBM demand – gives the company a level of earnings visibility the memory industry has historically lacked.

Even from a technical perspective, MU stock is just as attractive.

As of writing, it sits “decisively” above its moving averages (MAs), with an RSI in the mid-70s indicating intense buying pressure.

All in all, for investors, Micron Technology’s transition toward a steadier, contract‑driven model suggests its trillion‑dollar valuation may just be a waypoint rather than a peak.

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