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Micron Technology's Strategic Customer Agreements Could Drive Re-Rating, UBS Says

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Micron Technology's (MU) recently disclosed strategic customer agreements and through-cycle earnings power are setting the stage for re-rating, UBS said in a note Thursday, pointing to floor-pricing provisions and customer commitments.

UBS said the agreements could eventually help sustain gross margins well above prior cycle peaks.

The brokerage also expects Micron to generate about $380 billion in cumulative free cash flow during 2027 and 2028, enabling substantial share repurchases after CHIPS Act restrictions expire.

The brokerage raised its fiscal 2026-2028 earnings estimates following Micron's stronger-than-expected quarterly results and guidance.

UBS maintained its buy rating on Micron and a $1,625 price target.

Price: $1201.20, Change: $+153.28, Percent Change: +14.63%

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