Micron Stock Hits $1 Trillion Market Value As AI Demand For Memory Chips Rises

Micron Technologies briefly hit a $1 trillion market value for the first time on Tuesday as stocks rose 18% due to AI demand for its memory chips. The shares jumped as much as 19.3% in the session, Reuters reported. The stock was later trading 17.4% higher at $881.6.

Brokerage UBS almost tripled its price target on Micron's stock from $535 to $1,625 apiece, on the basis of long-term agreement opportunities with partially fixed pricing.

“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,” the firm wrote, according to CNBC.

The milestone reflects the pivotal role memory chips play in AI infrastructure. It also indicates a broader transition in the AI trade, as per Reuters, as investors look for companies that can profit from Big Tech's massive spending plans after initially investing in graphics processor manufacturers.

Micron mainly manufactures memory chips used to store and move data. The company's rise gives the US a strong contender in the race for memory chips, which has been largely dominated by Asian firms.

South Korean giant Samsung Electronics is the world's top memory chipmaker and has already hit the $1 trillion milestone. Another firm, SK Hynix, is also closing in on the milestone.

Micron's shares have surged more than eight times in the last 12 months on the back of strong earnings as well as supply chain constraints that have given the company pricing power.

The company has stated that its entire 2026 high-bandwidth memory (HBM) chip supply is already sold out, underscoring how demand is outstripping supply. Micron's next-generation HBM4 products are in production. Just a few weeks ago, the company crossed a market valuation of $700 million, becoming one of the most valuable tech firms.

Apart from Micron, Intel is also trading near its all-time high these days, as per CNBC. The stock of the American chipmaker, which missed out on the early AI rally, is up more than sixfold, after an investment by the US government prompted a turnaround last summer.

Stocks of Qualcomm, Marvell Technology and Advanced Micro Devices have also reached new highs.