Micron Smashes $1 Trillion Valuation After UBS Triples Price Target, Calling It an “AI-Native Infrastructure Giant”

Micron Technology (NASDAQ: MU) surged more than 21% on Tuesday, vaulting past a $1 trillion market capitalisation for the first time in its history, after UBS issued the most bullish call on Wall Street — more than tripling its price target to $1,625 from $535.

Shares climbed to a record intraday high of $916.80, trading near $912 in afternoon trade. The move added hundreds of billions in market value in a single session, pushing Micron alongside the likes of Eli Lilly and Berkshire Hathaway in the $1 trillion club.

UBS analyst Timothy Arcuri maintained his Buy rating and fundamentally reframed the investment case, describing Micron as an “AI-native infrastructure giant” rather than a traditional, boom-and-bust cyclical memory maker.

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The crux of the argument: long-term memory supply agreements already covering an estimated 60–70% of industry server DDR5 volumes are delivering Nvidia-like earnings visibility through 2029.

UBS significantly upgraded its earnings forecasts, modelling EPS of $155, $167, and $117 for calendar years 2027–2029, and projecting over $400 billion in cumulative free cash flow over the period.

Central to the bull case is the structural scarcity of memory. CEO Sanjay Mehrotra has flagged that Micron can currently fulfil only 50–67% of demand for its High Bandwidth Memory (HBM) and DRAM products — a supply-demand imbalance that analysts say could sustain elevated pricing well into the decade.

The rally also lifted peers, with SanDisk climbing 7% and Western Digital advancing 9%, as investors rushed to reprice the entire memory sector for an AI supercycle.