Micron stock surpassed a $1 trillion market cap on Tuesday, thanks to a rally fueled by UBS’s highly bullish call for the chipmaker.
The investment bank lifted its price target for the semiconductor firm to $1,625, up from its prior target of $535 a share. The new target implies a 90% increase in Micron over the next 12 months — a rally that’s likely to be driven by surging AI demand and the company’s long-term agreements, analysts wrote in a note on Tuesday.
Shares of Micron surged to close 19% higher, as the forecast made rounds among investors and wowed stock watchers on social media.
The rally drove Micron to a $1 trillion valuation for the first time. Shares of the memory chip maker are up 213% year-to-date.
Tuesday’s rally lifted other memory stocks as well. Sandisk stock rose 7%, Western Digital gained 8%, and Seagate was up 4%. Gains in the sector helped lift the broader Nasdaq more than 1%.
UBS said it was raising its estimates and earnings expectations for Micron over the next three years, pointing to the company’s long-term agreements “firmly in place across most of the industry.”
Micron is also expected to generate more than $400 billion in free cash flow from 2027-2029, they added.
“We believe the market will start to put a more ‘normal’ multiple on the stock and MU will continue to re-rate higher as more details emerge about the structural changes AI has driven to the entire memory complex,” UBS said, adding “we see no reason why MU should trade a whole lot differently than NVDA in terms of P/E.”
The company was also in the spotlight after President Donald Trump shouted out the stock when speaking at rally in New York on Friday.
“Micron, boy Micron’s great, they’re investing hundreds of billions,” the president said.
The comment has fueled speculation that the US government could eventually take a stake in Micron as it did with Intel and other companies deemed critical to US interests. Traders on Polymarket priced in a 34% chance that the government could purchase a stake in Micron by the end of the year.
Trump purchased shares of Micron worth $50,000 to $100,000 in March, per his latest trading disclosure.
