Micron Technology Inc. (NASDAQ:MU) stock soared Tuesday after UBS more than tripled its price target on the memory-chip maker, pointing to a structural shift in the AI memory market.

UBS analyst Timothy Arcuri maintained a Buy rating on Micron and raised the firm's price target to $1,625 from $535, implying 116% upside from Friday's close, according to Benzinga Pro. 

MU stock is soaring. See the chart and price action here. 

Arcuri's bullish thesis centers on what UBS described as "enhanced" long-term agreements in the memory market. 

Unlike prior offtake agreements that were largely tied to volume, the newer LTAs include extended durations, fixed-volume commitments, and partially fixed pricing.

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The agreements, which typically span three to five years, could give Micron a smoother revenue and earnings trajectory, higher cross-cycle return on invested capital and better visibility into committed customer demand. 

"The market will begin to apply a more ‘normal' multiple to the stock, and ...