Micron's stock reaches a major milestone as UBS slaps on an out-of-sight price target

Micron Technology reached a $1 trillion market capitalization on Tuesday, marking its first time surpassing that milestone. The company’s stock surged 19.3% to an all-time high of $895.88, propelling it past Walmart and Eli Lilly to become the 10th largest U.S. company by market value, according to Dow Jones Market Data. The gain of $163 billion in market cap—equivalent to the size of Charles Schwab—was the largest single-day increase since November 2011. The rally followed UBS analyst Timothy Arcuri’s revised outlook, which more than tripled Micron’s price target to $1,625 from $535, representing an 81% upside. Arcuri attributed the optimism to AI-driven demand tightening memory chip supply, with DRAM expected to remain undersupplied until at least Q2 2028 and NAND until Q4 2027. He noted that new long-term agreements now include fixed pricing frameworks, reducing volatility for customers while securing revenue visibility for Micron. These contracts, spanning three to five years, lock in up to 30% of DDR memory volumes at prices slightly below current levels. Arcuri projected Micron’s earnings per share will exceed $100 annually from 2025 through 2029, surpassing FactSet’s consensus estimate of $100.91 for the next fiscal year. He also forecasted over $400 billion in free cash flow during that period, driven by rising average sales prices for high-bandwidth memory. Arcuri compared Micron’s valuation potential to Nvidia, which trades at a 21.4x price-to-earnings ratio, suggesting Micron could justify a similar multiple. The analyst argued that AI-driven structural changes in the memory industry will support sustained growth, allowing Micron to trade at a more ‘normal’ valuation as details emerge. The stock’s 213.9% gain in 2026 underscores investor confidence in the company’s position amid the AI boom.