Micron tops $1 trillion in value as UBS says stock could double

Micron Technology Inc., based in Boise, Idaho, became the first U.S. semiconductor company to exceed a $1 trillion market capitalization, following an 840% increase over the past year. UBS Group AG raised its price target to $1,625 on Tuesday, over 116% above last week’s closing price, implying a market value of roughly $1.8 trillion—surpassing companies like Meta Platforms, Tesla, and Berkshire Hathaway. The stock surged 19% in a single day, its largest one-day gain since November 2011, after UBS’s upgrade and a Huawei Technologies official’s comment about a potential chip design breakthrough. Micron’s shares have risen over 70% in May alone, marking its biggest monthly jump since December 1987, and have tripled this year after a near-240% surge in 2023. UBS analyst Timothy Arcuri attributed the growth to AI-driven demand for memory chips, which has disrupted the traditionally cyclical industry. The massive data needs of AI tools have created sustained demand, while supply constraints have pushed prices higher. Arcuri noted that companies like hyperscalers are prioritizing long-term supply agreements over pricing for predictability. Analyst sentiment remains overwhelmingly bullish, with 49 buy-equivalent ratings and no sell recommendations, though the average price target of $685.82 suggests over 23% downside from Tuesday’s close. Micron’s market value now exceeds $1 trillion, reflecting its dominant position in the evolving memory chip market.