Micron closes in on $1 trillion market value as UBS triples share price target

Micron closes in on $1 trillion market value as UBS triples share price target Reuters Tue, May 26, 2026 at 4:16 PM GMT+2 2 min read MU UBS May 26 (Reuters) - Shares of Micron Technology climbed about 14. 2% in early trading on Tuesday after brokerage UBS sharply raised ‌its target price for the stock citing stronger AI ‌demand and long-term supply deals, taking the chipmaker closer to $1 trillion in market value. The ​revised target - the highest among the 46 brokerages covering the stock - implies a potential valuation of close to $1.

8 trillion for the company by the next twelve months, compared with a market capitalization of $846. 93 billion as of close ‌on Friday. More from Yahoo Scout How do long-term supply agreements impact Micron's business?

What is driving AI demand for memory chips? How does Micron's valuation compare to other semiconductors? Why did UBS dramatically increase Micron's price target?

• UBS raised ⁠the price target more than threefold to $1,625 from the earlier $535, compared with the stock's Friday close of $751. • The ⁠brokerage said the emergence of long-term agreements across the industry, locking in volumes and partially fixing prices could stabilize Micron's historically volatile earnings ​profile. • These ​deals are expected to cover a ​growing portion of DRAM supply, ‌providing greater demand visibility and reducing pricing swings, according to the brokerage.

• There was "no reason" Micron should trade much differently from Nvidia on a price-to-earnings basis as long-term agreements and AI-driven demand reshape the company's earnings and visibility, UBS said. • The brokerage added that hyperscalers are ‌increasingly willing to trade pricing flexibility for ​long-term supply assurance, a shift that ​underpins the contracts and helps ​stabilize the sector. • As a result, UBS expects ‌Micron to command a higher valuation ​multiple, moving closer ​to other semiconductor peers as investors gain confidence in its longer-term earnings durability.

• Micron was trading at 8. 42 times expected earnings ​over the next 12 ‌months, compared with 21. 1 for the benchmark S&P 500 index ​and 24.

66 for the Nasdaq 100.