Micron Tops $1 Trillion Market Cap as UBS Raises Target to $1625
MU•Micron’s market capitalization surpassed $1 trillion, fueled by high-bandwidth memory demand for AI and shifts to multi-year supply contracts, driving its shares up over 6% premarket. UBS lifted its price target from $535 to $1625 and argued Micron’s P/E deserves parity with Nvidia given its transformed business model.
1. Market Cap Milestone
Micron’s market capitalization topped $1 trillion after shares rallied on renewed memory demand, marking the company’s entry into the elite club alongside peers like Nvidia and SK Hynix.
2. Business Model Transformation
The company has shifted from spot sales to multi-year supply agreements and capitalized on high-bandwidth memory for AI workloads, smoothing revenue volatility inherent to memory cycles.
3. UBS Price Target Revision
UBS analysts increased the price target to $1625 from $535, arguing Micron’s P/E multiple should align with Nvidia’s given its transformed, AI-driven business model.
4. Extended Stock Rally
Micron shares surged over 6% in premarket trading, extending a broader semiconductor rally as investors weigh both the market-cap milestone and favorable industry trends.
