Micron Surpasses $1 Trillion Market Value Amid Bullish Forecast from UBS

Micron Technology's Market Capitalization Set to More Than Double, Analyst Predicts

Micron Technology Inc.'s market capitalization, which has soared about 840% over the past year, is expected to more than double over the next 12 months, according to at least one analyst. The Boise, Idaho-based chipmaker's market value has been on a tear, fueled by strong demand for memory chips driven by the massive artificial intelligence (AI) infrastructure build-out cycle.

UBS Group AG on Tuesday boosted its price target for Micron Technology to a street high of $1,625, more than 116% above where it closed last week. This target is three times higher than UBS's previous estimate of $535 and implies a market value of roughly $1.8 trillion. This would make Micron Technology larger than the current market capitalization of companies like Meta Platforms Inc., Tesla Inc., and Berkshire Hathaway Inc..

Micron Technology's shares rallied 19% on Tuesday, supported by both the UBS call and after a Huawei Technologies Co. official said the Chinese company had made a potential breakthrough on chip design, causing chip stocks to jump. The surge pushed Micron's market value past $1 trillion for the first time. This day's rally - its biggest one-day percentage gain since November 2011 - is the latest example of the stock's incredible momentum.

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The day's rally has put Micron Technology's stock on track for its biggest one-month jump since December 1987, with the company up more than 70% in May. The stock has more than tripled this year, adding to a surge of nearly 240% last year. UBS analyst Timothy Arcuri believes that the market will start to put a more "normal" multiple on the stock and that Micron Technology will continue to re-rate higher as more details emerge about the structural changes AI has driven to the entire memory complex.

While the memory chips business was traditionally cyclical, the massive AI infrastructure build-out cycle has broken the pattern. The enormous amount of data used by artificial intelligence tools in development has created persistent demand for memory chips while supplies have run low. Hyperscalers appear increasingly willing to exchange pricing for multi-year supply visibility and greater predictability around future deployment economics, according to Arcuri.

The stock has 49 buy-equivalent ratings, five analysts have hold recommendations, and no one recommends selling. The average analyst price target sits at $685.82, according to data compiled by Bloomberg. This implies downside of more than 23% from Micron Technology's Tuesday close.

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