Micron shares rose 3% on Wednesday and traded above $920 after the stock had its best day since 2011 a session earlier, extending a rally that pushed the chipmaker past a $1 trillion market value for the first time. The move came after UBS more than tripled its price target on Micron to $1,625 from $535.
Tuesday’s surge carried Micron past $886.74 and made it the 11th-largest U.S. public company by market value. It also ended with a record close, the company’s 28th of the year. By Wednesday, the stock was still climbing, and bulls were suddenly pointing to a path that looked nothing like the old memory-chip trade.
UBS analyst Timothy Arcuri said the market should start putting a more normal multiple on Micron as investors get more evidence of the changes AI has driven across the memory complex. He said AI demand is giving Micron more visibility into demand and a smoother earnings path, and he argued that the AI boom has structurally changed the market for memory. A $1,625 price would imply a market cap of roughly $1.8 trillion.
For years, Micron was treated like a cyclical memory stock, with investors bracing for boom-and-bust pricing in DRAM and NAND. UBS’s call suggested that old framework is breaking down as AI spending reshapes demand, and the move landed alongside gains in other chip names including Marvell Technology, ON Semiconductor, Advanced Micro Devices, Lam Research, Intel and Qualcomm.
The stock’s speed now matters as much as the target. Micron bulls will want to hold the $800 price level near the old highs, while the biggest near-term support below that sits around $665. A pullback to either level would still leave the shares far above where they started the week, but it would also test how much of this run is built on conviction and how much is built on momentum.
