Micron and Alphabet: AI-Driven Growth Sparks Analyst Optimism
UBS has significantly raised Micron Technology's price target to $400, reflecting a 16% upside potential, following meetings with senior management. The semiconductor firm anticipates an extended memory cycle fueled by AI demand, currently meeting just 50-75% of top customers' needs due to supply constraints.
Analyst Timothy Arcuri boosted Micron's 2026 EPS estimate to $45 and 2027 projection to $60, citing structural advantages in AI memory markets. The stock's 237% annual surge outpaces most large-cap tech peers, yet trades at a modest 7.1x forward P/E.
Alphabet maintains its AI leadership across Search, YouTube, and Cloud divisions, trading at 27.9x forward earnings. Both companies demonstrate how traditional tech giants are capitalizing on the AI infrastructure boom, with Micron positioned as a critical bottleneck supplier.