Micron hits $1 trillion market cap for the first time

Micron It reached a market value of $1 trillion for the first time on Tuesday, as shares rose 18 percent, driven by insatiable artificial intelligence demand for memory chips.

The stock boost comes as UBS nearly tripled its price target on the stock from $535 to $1,625 per share, citing partly fixed-pricing long-term deal opportunities.

“We believe the market will begin to place a more ‘normal’ multiple on the stock and will continue to re-rate MU as more details emerge about the structural changes AI is causing to the entire memory complex,” the firm wrote.

The new price target suggests shares could more than double from Friday’s close.

Micron is among the new chipmakers taking advantage of the next phase of the AI ​​race. Investors are snapping up stocks tied to the central processing units and memory needed to run and process agent workloads in a battlefield once dominated by computers. Nvidia.

Explosive demand for artificial intelligence has led to a global memory shortage that chipmakers like Micron are trying to fill. This is allowed Micron and peers SK Hynix And SAMSUNG raise prices. Micron’s shares have more than tripled year to date.

Just a few weeks ago, Micron surpassed its $700 million market cap and became one of the most valuable technology companies in the United States.

IntelIt is up more than sixfold and trading near all-time highs after missing the early AI rally. The American chipmaker is in the midst of a major transformation following a major investment from the US government last summer.

Qualcomm, Advanced Micro Devices And Marvel Technology also reached new heights.