Micron Technology's stock soared 5.08% intraday, extending a rally that saw the memory chipmaker's market capitalization briefly surpass $1 trillion for the first time.
The surge was fueled by a bullish analyst report from UBS, which more than tripled its price target on Micron to $1,625 from $535. The investment firm cited the emergence of enhanced long-term agreements across the memory industry that incorporate fixed volume commitments and partially fixed pricing frameworks. According to UBS, these agreements are expected to stabilize Micron's historically volatile earnings profile by providing greater demand visibility and reducing pricing swings.
Additionally, Micron is benefiting from surging demand for memory chips driven by artificial intelligence infrastructure build-outs. The company's high-bandwidth memory (HBM) supply is reportedly sold out through 2026, reflecting tight market conditions as AI applications require increasing amounts of data storage and processing capacity.
