US chipmaker Micron Technology briefly crossed a market capitalization of $1 trillion on May 26, as investor enthusiasm around artificial intelligence continued to fuel demand for memory chips. According to a Reuters report, the sharp rally positioned Micron as one of the biggest beneficiaries of the AI boom, with its shares surging more than 17% during trading.
Stock Surge and Analyst Upgrades
Micron's stock jumped after brokerage UBS raised its price target on the company to $1,625 from $535, as cited in the Reuters report. The shares rose as much as 19.3% during the session before easing slightly later. Analysts attribute the surge to growing demand for advanced memory chips used in AI data centers and cloud infrastructure.
The company's rise highlights how investors are now looking beyond graphics chipmakers and focusing on firms supplying key AI hardware components. "The need for pure memory has increased rapidly over very short periods of time, and clearly, Micron sits at the center of it," said Art Hogan, chief market strategist at B. Riley Wealth. "Today's crossing of the $1 trillion mark for Micron is just an exclamation point on the story of the massive amount of demand needed to run data centers in this AI revolution."
AI Boom Creating Supply Crunch
According to Reuters, Micron's shares have jumped more than eightfold in the past year due to strong demand and supply shortages in the memory chip industry. Just a few weeks ago, Micron surpassed a $700 billion market valuation, rising into the ranks of the most valuable US tech firms.
The company has already announced that its entire 2026 supply of high-bandwidth memory (HBM) chips has been sold out. These chips are widely used in AI systems and advanced computing infrastructure. The report also noted that customers are increasing long-term investments in AI data centers as competition grows around artificial general intelligence technologies.
Global Competition Intensifies
The AI-driven growth has also intensified competition among memory chipmakers globally. South Korea-based Samsung Electronics has already crossed the $1 trillion market value mark, while SK Hynix is also gaining from rising AI demand.
Micron's milestone underscores the critical role of memory chips in the AI revolution, as data centers and advanced computing systems require ever-increasing amounts of high-performance memory. With supply constraints expected to persist, the company is well-positioned to capitalize on the ongoing technological transformation.
