Micron Joins $1 Trillion Club After UBS Triples Target

Micron Technology reached a $1 trillion market capitalization on May 26 after its shares jumped following a UBS note that raised the price target to $1,625 and kept a buy rating.

UBS analysts led by Timothy Arcuri increased the firm’s price objective to $1,625, which the bank said implies roughly 80% upside from recent levels. The analysts pointed to rapid AI infrastructure buildout by hyperscale cloud customers as the primary driver of demand for Micron’s memory products, particularly high-bandwidth memory (HBM).

The UBS note described a change in Micron’s customer agreements. Memory suppliers historically used short-cycle, volume-based offtake arrangements. UBS wrote that Micron’s contracts are shifting to multi-year deals with fixed-volume obligations and a partially fixed pricing framework that locks in price and volume, which the bank said reduces revenue volatility and improves visibility into committed demand.

Micron’s shares have risen about 185% year to date. UBS projected that sustained HBM demand could produce cumulative free cash flow of roughly $400 billion between 2027 and 2029 and estimated that annual earnings per share could exceed $100 in the coming years.

The bank described Micron as one of the “clearest structural winners” in the global AI build-out and recommended holding the stock based on stronger demand and greater earnings visibility.

Market indicators reflected similar optimism. Options with an upper strike expiring Aug. 21 sit near $1,187, a level that implies roughly a 33% potential rise over three months. Technical measures show the stock trading above key moving averages with a relative strength index in the mid-70s. Micron pays a small dividend.

Micron is headquartered in Boise, Idaho.