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Micron surpassed a market value of $1 trillion for the first time on Tuesday as shares surged 18%, driven by insatiable stocks. artificial intelligence demand for its memory chips.
The stock rally came as UBS tripled its price target on the stock from $535 to $1,625 per share, citing opportunities for long-term deals with partially fixed pricing.
“We believe the market will begin to assign a more ‘normal’ multiple to the stock and that MU will continue to raise its rating as more details emerge about the structural changes that AI has driven across the memory complex,” the company wrote.
The new price target suggests shares could more than double from Friday’s close.
Read more CNBC tech newsMicron is part of a new crop of chip makers benefit from the next stage of the AI race. Investors are snapping up stocks related to the central processing units and memory needed to run and process agentic workloads in a battleground once dominated by Nvidia.
Explosive demand for AI has led to a global memory shortage that chipmakers like Micron are struggling to fill. It’s licensed to Micron and its peers SK Hynix And Samsung to increase prices. Micron stock has more than tripled since the start of the year.
Just a few weeks ago, Micron surpassed a $700 billion market valuation and has risen to the ranks of the most valuable American technology companies.
Intelafter missing the first AI rally, is up more than six times and trading near all-time highs. The US chipmaker is in the midst of a major turnaround following a significant investment from the US government last summer.
Qualcomm, Advanced microdevices And Marvell Technology also reached new heights.
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Micron Stocks in 2026
Correction: UBS tripled its price target on Micron from $535 to $1,625 per share. An earlier version misinterpreted this decision. Just a few weeks ago, Micron surpassed the market valuation of $700 billion. An earlier version incorrectly stated this figure.
