On May 27, GraniteShares 2x Long MU ETF rose 8.67% overnight, trading at $713.79/share, with trading volume of approximately $1.52 million. As a 2x leveraged ETF tracking Micron Technology, the fund's surge was driven by UBS raising its price target on Micron from $535 to $1,625, the highest on Wall Street, while maintaining a Buy rating.
The core thesis behind UBS's upgrade centers on the memory industry's first-ever enhanced Long-Term Agreements (LTAs) featuring longer durations, fixed volume commitments, and partially fixed pricing frameworks. According to UBS, hyperscalers have secured approximately 60%-70% of industry Server DDR5 volumes under these agreements. The brokerage argues this structural shift will smooth Micron's earnings profile, improve cross-cycle return on invested capital, and drive a re-rating from cyclical to growth-stock valuation multiples. UBS projects Micron's market capitalization could reach $1.8 trillion, representing more than a doubling from current levels.
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