Micron Tops $1 Trillion After AI Memory Demand Surge

Micron Technology shares rose to a record on May 26, closing at $895.88 after an almost 23% intraday gain. The rally briefly pushed the company’s market capitalization above $1 trillion, and shares extended toward $920 in overnight trading.

The surge followed a UBS price-target increase to $1,625 from $535 and growing demand for high-performance memory used in artificial intelligence training and inference. UBS projects AI-driven memory shortages could persist through at least the second quarter of 2028 and estimates Micron could generate more than $100 per share in annual profits between 2027 and 2029 if current conditions continue.

Micron reported it can fulfill about 60% of requests from key customers for advanced memory products. Demand is concentrated in advanced DRAM and high-bandwidth memory (HBM); HBM wafers can produce roughly three times the output value of standard DRAM.

The company began full-scale operations at a $2 billion DRAM plant in Manassas, Virginia, producing 1-alpha DRAM. CEO Sanjay Mehrotra described the site as a strategic milestone for securing advanced memory production in the United States and supporting long-lifecycle customers in aerospace, defense, automotive, industrial systems and healthcare. Management has outlined plans for up to $200 billion in long-term investments to expand domestic memory manufacturing capacity.

For the quarter ended Feb. 26, Micron reported revenue of $24 billion, nearly three times the prior year, and adjusted net income of about $14 billion, roughly eight times year-ago levels. Shares are up more than 200% year to date and about 800% over the past 12 months.

The UBS upgrade coincided with gains across semiconductor stocks. Traders are watching recent breakout levels near $870–$890 for support and monitoring whether trading volume stays elevated on any pullback.