US chipmaker Micron reaches $1 trillion market capitalization for the first time

US chipmaker Micron Technology briefly crossed a market value of $1 trillion on May 26 as investor excitement around AI continued to drive demand for memory chips. According to a report by news agency Reuters, the sharp rally made Micron one of the biggest winners of the AI boom, with its shares rising more than 17% during trading. Micron’s stock jumped after brokerage UBS raised its price target on the company to $1,625 from $535, the report said. The company’s shares rose as much as 19.3% during the session before easing slightly later.


As cited in the Reuters report, analysts say the surge reflects growing demand for advanced memory chips used in AI data centers and cloud infrastructure. The company’s rise also highlights how investors are now focusing beyond graphics chipmakers and looking at 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,” Art Hogan, chief market strategist at B. Riley Wealth, told Reuters. “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,” he added.

AI boom creating supply crunch

According to Reuters, Micron’s shares have jumped more than eight times 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 most valuable US tech firms.


The company has already said its entire 2026 supply of high-bandwidth memory, or 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.


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.