Micron stock popped 18% on Tuesday, reaching a $1 trillion valuation for the first time.<\/p>\n
Traders cheered a bullish UBS report, which forecast the stock to rise 90% in the next year.<\/p>\n
Trump shouted out Micron at a rally on Friday, helping to boost the stock after the holiday weekend.<\/p>\n
Micron stock<\/a> surpassed a $1 trillion marker cap on Tuesday, thanks to a rally fueled by UBS’s highly bullish call for the chipmaker.<\/p>\n The investment bank lifted its price target for the semiconductor firm to $1,625, up from its prior target of $535 a share. The new target implies a 90% increase in Micron over the next 12 months \u2014 a rally that’s likely to be driven by surging AI demand and the company’s long-term agreements, analysts wrote in a note on Tuesday.<\/p>\n Shares of Micron soared as much as 18% on Tuesday as the forecast made rounds among investors and wowed stock watchers on social media.<\/p>\n The rally drove Micron to a $1 trillion valuation for the first time. Shares of the memory chip maker are up 208% year-to-date.<\/p>\n Tuesday’s rally lifted other memory stocks as well. Sandisk stock rose 7%, Western Digital gained 9%, and Seagate was up 3%. Gains in the sector helped lift the broader Nasdaq more than 1%.<\/p>\n UBS said it was raising its estimates and earnings expectations for Micron over the next three years, pointing to the company’s long-term agreements “firmly in place across most of the industry.”<\/p>\n Micron is also expected to generate more than $400 billion in free cash flow from 2027-2029, they added.<\/p>\n “We believe the market will start to put a more ‘normal’ multiple on the stock and MU will continue to re-rate higher as more details emerge about the structural changes AI has driven to the entire memory complex,” UBS said, adding “we see no reason why MU should trade a whole lot differently than NVDA in terms of P\/E.”<\/p>\n The company was also in the spotlight after President Donald Trump shouted out the stock when speaking at rally in New York on Friday.<\/p>\n “Micron, boy Micron’s great, they’re investing hundreds of billions,” the president said.<\/p>\n The comment has fueled speculation that the US government could eventually take a stake in Micron as it did with Intel<\/a> and other companies deemed critical to US interests. Traders on Polymarket priced in a 34% chance that the government could purchase a stake in Micron by the end of the year.<\/p>\n Trump purchased shares of Micron worth $50,000 to $100,000 in March, per his latest trading disclosure.<\/p>\n