Micron reaches $1 trillion market capitalization for the first time

micron The company surpassed $1 trillion in market capitalization for the first time on Tuesday, with its stock soaring 18% on the back of insatiable artificial intelligence demand for its memory chips.

The stock price surge came after UBS tripled its price target for the company from $535 to $1,625 per share, citing the opportunity for a long-term contract at a partially fixed price.

“As more details emerge about the structural changes AI has brought to the entire memory complex, we expect the market to begin pricing the stock at more ‘normal’ multiples, and MU’s revaluation will continue,” the company wrote.

The new price target suggests the stock could more than double its Friday closing price.

Micron is one of the new chipmakers to benefit from the next phase of the AI ​​race. Investors are buying up stocks related to the central processing units and memory needed to run and process agent workloads in a battlefield once dominated by agents. Nvidia.

Explosive demand for AI has created a global memory shortage that chipmakers like Micron are struggling to fill. It is allowed at Micron and its peers SK Hynix and samsung To raise prices. Micron’s stock price has more than tripled since the beginning of the year.

Just a few weeks ago, Micron became one of America’s most valuable tech companies, with a market valuation of more than $700 billion.

intelAfter missing out on the initial AI rally, the stock has risen more than 6x and is trading near all-time highs. The U.S. chipmaker is in the midst of a major turnaround following a major investment from the U.S. government last summer.

Qualcomm, advanced micro device and marvel technology also hit a new high.

Correction: UBS triples Micron’s price target from $535 to $1,625 per share. Previous versions had incorrect characteristics for this move. Just a few weeks ago, Micron’s market valuation topped $700 billion. The diagram was misspelled in previous versions.