Micron Soars to Record After UBS Boost, AI Demand Tightens

Micron Technology shares rose to a record $895.88 on May 26, gaining about 19% intraday and briefly pushing the company’s market capitalization above $1 trillion. The rally followed a UBS price-target increase to $1,625 from $535 and continued into overnight trading near $920.

UBS analyst Timothy Arcuri wrote in a research note that AI-driven memory shortages could persist through at least the second quarter of 2028. The firm said prolonged tight supply would strengthen pricing power for leading memory makers and projected Micron could generate more than $100 per share in annual profits from 2027 to 2029 if those conditions hold.

Micron’s chief executive Sanjay Mehrotra said the company can fill only about 60% of the memory requests it receives from major customers. Management has been expanding production capacity in response to higher demand.

The company recently began full-scale operations at a $2 billion plant in Manassas, Virginia, that produces 1-alpha DRAM. Micron has described the facility as part of a multi-decade investment plan that could total about $200 billion to build U.S. memory manufacturing capacity.

Financial results for the quarter ended Feb. 26 reflect the demand surge. Revenue reached about $24 billion, nearly triple year over year, and adjusted net income was roughly $14 billion, up almost eightfold. Shares have risen more than 200% year to date and over 800% in the past 12 months.

Industry supply constraints have tightened pricing for advanced DRAM and high-bandwidth memory used in AI model training and inference. UBS and other analysts noted that shifting wafer allocations into HBM reduces standard DRAM output per wafer, limiting available supply.

The UBS upgrade triggered buying across semiconductor stocks and supported further gains in Micron. Technical traders pointed to breakout levels near $870 to $890 as a reference for market participation and tracked volume on pullbacks to gauge investor interest.

President Donald Trump commented before a three-day market holiday that “Micron is great” and said the company could invest “over $100 billion” in New York. Those remarks came days before the stock’s sharp advance when markets reopened.