Micron Technology briefly topped $US1 trillion ($1.4 trillion) in market value for the first time on Tuesday, crowning a dizzying rally propelled by the surging artificial intelligence boom. The American memory chipmaker’s shares climbed 17.4 per cent, after rising nearly 19.3 per cent earlier. This surge followed UBS raising its price target on the stock significantly, now the highest among brokerages covering the company. This milestone highlights memory chips’ central role in AI infrastructure and signifies a broader shift in the AI investment landscape, as investors seek out companies poised to benefit from substantial technology sector spending.
Micron mainly produces memory chips used to store and move data, differentiating it from companies like Nvidia, which focus on powerful processors for AI models. The company’s ascent positions the US as a strong contender in the memory chip race, a sector historically led by Asian giants such as Samsung Electronics and SK Hynix. Experts note the rapidly increased need for pure memory in data centres driving the AI revolution, placing Micron at its core. Potential disruptions from major players like Samsung could exacerbate price hikes at a time when AI demand already causes shortages.
Micron’s shares have jumped more than eightfold in the past 12 months, recovering from a post-pandemic supply glut. This rebound is fuelled by strong earnings, supply chain constraints, and the company’s newfound pricing power. As tech companies accelerate towards advanced AI, customers are committing to long-term data centre investments. This has led to a sharp rise in demand for advanced memory and storage, creating a supply crunch. Micron has reported its entire 2026 high-bandwidth memory (HBM) chip supply is already sold out, a clear indicator of demand vastly outstripping capacity. The company’s next-generation HBM4 products are now in production.
