Micron Technology crossed the $1 trillion market value mark for the first time on Tuesday after its shares jumped 19%, fueled by strong demand for memory chips used in artificial intelligence systems.
The rally followed a major price target upgrade from UBS, which raised its forecast from $535 to $1,625 per share, citing long-term contracts and structural changes in the memory chip market driven by AI growth. Analysts said the sector is moving into a new pricing environment as demand continues to outpace supply.
Investors have been buying chip stocks tied to AI workloads, including memory and processing units, as global shortages push prices higher. Micron’s stock has more than tripled this year, joining a broader rally that has also lifted peers such as SK Hynix and Samsung Electronics.
The surge reflects growing confidence in AI infrastructure demand, though some analysts caution that valuations across the semiconductor sector may be overheating after rapid gains across major US tech firms.
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