Micron joins $1 trillion club as AI race powers memory chip boom

Micron Technology became the first U.S. company to reach a $1 trillion market valuation on May 26, marking a landmark achievement in the AI-driven semiconductor boom. Its shares rose 18% to a record $886.6 after UBS raised its price target to $1,625—the highest among 46 brokerages tracking the company—citing strong demand for memory chips in AI infrastructure. The milestone highlights memory chips’ critical role in AI, as tech giants invest heavily in data centers requiring advanced storage solutions. While Nvidia dominates AI processors, Micron specializes in memory chips essential for storing and transferring data, giving it pricing power amid supply shortages. Its stock has surged over eightfold in the past year, supported by long-term data center contracts and a supply crunch. Micron’s HBM4 chips, now in production, have sold out for 2026, underscoring demand outpacing capacity. The company attracted 2,440 institutional investors in Q1, including Rockefeller Capital Management and Schroders, reflecting strong market confidence. This rebound follows a post-pandemic slump when memory chipmakers faced oversupply due to weakened demand for PCs and smartphones. With AI advancements pushing companies toward general intelligence, Micron’s growth positions the U.S. as a key player in a sector long dominated by Asian rivals like Samsung and SK Hynix. The company trades at 8.42 times forward earnings, lower than the S&P 500’s 22.15 and Nasdaq 100’s 26.23, signaling investor optimism about its growth trajectory.