Micron Also Surpasses $1 Trillion Market Cap... AI Memory Rally Expands

Micron Technology's stock price surged, pushing its market capitalization above 1 trillion dollars. This sharp rise is attributed to expectations that the spread of artificial intelligence (AI) will lead to a significant increase in demand for memory semiconductors.

Reuters Yonhap News

On the 26th (local time) at the New York Stock Exchange (NYSE), Micron closed at 895.88 dollars, up 19.3% from the previous trading day. As a result, its market capitalization surpassed 1 trillion dollars.

The immediate trigger for Micron's sharp rally was UBS's upward revision of its target price. UBS raised its target price for Micron from 535 dollars to 1,625 dollars, more than tripling it. This was based on the assessment that AI is evolving from simple Q&A to performing actual work as "agentic AI," which is expected to drive a substantial increase in demand for memory semiconductors.

In its report, UBS stated that the market will begin to apply a more normalized valuation multiple to Micron. UBS explained that as the structural changes brought about by AI in the memory industry become more concrete, Micron will continue to be revalued.

Memory semiconductor companies have traditionally received lower valuations than other semiconductor firms due to the high volatility of the memory market. However, with increased investment in AI data centers and growing demand for high bandwidth memory (HBM) occurring simultaneously, investors' perspectives are changing.

The memory semiconductor rally is also spreading to Korean companies. Earlier, on May 6, Samsung Electronics became the first Korean company to surpass a market capitalization of 1 trillion dollars. SK hynix is also on the verge of reaching the 1 trillion dollar mark.

This content was produced with the assistance of AI translation services.