Micron stock climbs to record highs as AI-driven memory chip demand persists, with analyst projecting 80% further upside through 2029.

Micron's shares rose 19.54% on Tuesday following bullish remarks from UBS analyst Timothy Arcuri, who expects random-access memory shortages to persist until at least the second quarter of 2028.

The memory chip shortage is enabling Micron to raise prices and lock in attractive terms through long-term supply agreements with customers for up to five years, which Arcuri believes will reduce the company's typical earnings volatility.

Arcuri expects Micron to generate more than $100 per share in profits annually from 2027 to 2029, and sees the stock price climbing another 80% to $1,625 per share.