What Happened?
Shares of memory chips maker Micron (NYSE:MU) jumped 3.2% in the morning session after UBS reiterated its Buy rating on the stock, maintaining a price target of $155.
The move from the investment bank signals continued confidence in the memory-chip maker's performance. According to the report, UBS analyst Timothy Arcuri kept the positive rating on Micron following the company's decision to raise its financial guidance for the fourth quarter of fiscal year 2025. This reaffirmation by a major financial institution suggests a bullish outlook on the company's prospects, likely driven by the improved financial forecast provided by Micron itself.
After the initial pop the shares cooled down to $121.88, up 3.5% from previous close.
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What Is The Market Telling Us
Micron’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock dropped 5.8% on the news that the major indices continued to pull back, with technology stocks accounting for most of the market's largest decliners.
A key reason for this trend is that much of the recent market gains were concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.
Despite the downturn, some analysts viewed this as an opportunity to own some of the "Core AI winners." Dan Ives of Wedbush Securities commented, "In our view, the tech bull cycle will be well intact for at least another 2-3 years, given the trillions being spent on AI infrastructure/software/chips/power/apps looking ahead. This remains our tech playbook and investor roadmap." Additionally, mixed earnings reports from retailers, such as Target, have added to the market's weakness. Investors are closely monitoring these reports for insights into the broader economic health and the potential impact of new tariffs on inflation.
Micron is up 39.6% since the beginning of the year, and at $121.88 per share, it is trading close to its 52-week high of $127.91 from June 2025. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $2,668.
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