Shares of memory chip maker Micron Technology have soared amid a global shortage of these semiconductors, and UBS analysts believe that this is a long-term trend, <a href="https://www.barrons.com/articles/micron-stock-price-memory-chips-e1755fa0">writes</a> Barron's. The supply deficit will remain long enough to justify further growth of quotations, the investment bank believes.

UBS analyst Timothy Arcury on Friday, February 6, raised his target price on shares of memory chip maker Micron from $400 to $450, which implies a growth potential of 14.3%. The analyst also confirmed the recommendation to buy these securities.

At trading on Friday they rose by 1.5% to $399.5. Since the beginning of the year, the company's capitalization has grown by 37%, and over the past 12 months - more than four times. Quotes were fueled by high demand for memory chips used in artificial intelligence equipment. The deficit is pushing prices up for the entire line of Micron products, notes Barron's.

Barron's has previously <a href="https://www.barrons.com/articles/sandisk-sndk-micron-nvidia-stock-memory-chips-decab742">warned</a> that memory makers traditionally build overcapacity during the growth phase of the semiconductor cycle, which subsequently leads to sharp collapses. However, Arcury sees no risk of overheating in the near term.

"Our conversations with market participants indicate that memory shortages will persist through 2027, with DRAM (RAM) shortages likely to persist through the fourth quarter of 2027 and NAND (flash memory) shortages through the first quarter," Arcury wrote in a note quoted by the publication. DRAM is used in PCs and servers, while NAND is used in smartphones and SSDs.

Skeptics point out that electronics manufacturers, faced with rising component prices, may cut back on memory purchases, Barron's notes. In addition, higher prices could dampen demand for smartphones and personal computers. However, Arcury believes that increased memory consumption in AI datacenters will more than offset these risks.

He is also confident that Micron will do well to compete with Korean players Samsung Electronics and SK Hynix in the HBM segment, a high-speed memory for AI chips that is critical to GPUs produced by companies such as Nvidia. "All major AI gas pedal vendors are moving to a three-vendor procurement strategy, moving away from the previous reliance on one or two suppliers," emphasized Arcuri.

Wall Street is generally positive about the prospects of the memory maker. According <a href="https://www.marketwatch.com/investing/stock/mu/analystestimates">to</a> MarketWatch, 44 out of 50 analysts tracking the dynamics of Micron securities advise to buy them. A month ago "bullish" recommendations were only 39. Four analysts suggest keeping the company's shares in the portfolio, and only two believe that they should be sold. At the same time, the Wall Street consensus price target is 4.5% below the last close.<br><br>

<i>This article was AI-translated and verified by a human editor</i>

Micron Technology, Inc.

Powerchip Semiconductor Manufacturing Corp.

Shares of Powerchip Semiconductor Manufacturing, one of Taiwan's largest Taiwanese companies that makes both conventional and memory chips, rose nearly 10 percent on Monday, Jan. 19, after U.S. chipmaker Micron Technology announced it would acquire a large chip foundry in Taiwan from Powerchip.

Micron to buy plant from Taiwan chipmaker for $1.8 billion, its shares soar

A member of the board of directors of memory chip maker Micron Technology, Mark Liu, bought 23,200 shares of the company's stock this week, <a href="https://www.sec.gov/Archives/edgar/data/723125/000205876926000002/xslF345X05/primarydocument.xml">according to </a>a disclosure on the U.S. Securities and Exchange Commission's website. The transactions were made on Tuesday and Wednesday, and the average price was about $337 per paper - on Monday, January 12, quotes Micron updated the record at $345, then slightly corrected. Total purchases amounted to $7.8 million, MarketWatch <a href="https://www.marketwatch.com/story/microns-stock-gets-an-8-million-vote-of-confidence-from-this-industry-veteran-caf334bc">calculated</a>. With this, Liu gave a strong signal to the market, the publication notes. Now the insider directly owns 25,910 shares of Micron.

A Micron insider bought $8 million worth of the company's stock, what does that tell investors?

Intel Corporation

Citi analysts have revised their estimates of the largest chipmakers, raising their recommendation on Intel and at the same time excluding Micron from the list of priority ideas. The investment company sees tactical opportunities for Intel against the backdrop of competitors' limitations, but points to remaining risks. Whereas on Micron, analysts say, a slowdown in DRAM memory price growth is expected.

Citi changes Intel and Micron valuations amid chip market dynamics. Is it worth buying?

SK hynix Inc.

Samsung Electronics Co., Ltd.

At the end of 2025, the global semiconductor market is facing an acute shortage of memory chips. The three largest players - Micron, SK Hynix and Samsung Electronics - <a href="https://counterpointresearch.com/en/insights/global-dram-and-hbm-market-share">control </a> almost the entire memory market for AI gas pedals, with their shares rising 253.6%, 256% and 178% respectively over the year. Memory issues are already a structural problem, without the solution of which it is impossible to further scale AI.

The memory limit: How chip shortages are driving up prices and slowing down the AI boom

The bank estimates that the memory chip shortage that has sent the company's quotes skyrocketing will persist until the end of 2027

UBS raised its target on Micron shares after a long rally. Why are they still worth buying?

Details

How long will strong demand last

What other analysts recommend