[DigitalToday reporter Chi-gyu Hwang] U.S. memory chipmaker Micron’s shares jumped 18 percent on May 26, helped by strong demand for AI memory chips, pushing its market value above $1 trillion for the first time.
CNBC reported the surge was largely driven by UBS raising its Micron price target to $1,625 from $535, nearly tripling it.
UBS cited long-term contract opportunities with some fixed prices as the basis for the higher target. The new target suggests the shares could more than double from last Friday’s closing price.
UBS said the market would start to apply a more normal valuation to Micron shares. It also forecast Micron would continue to be rerated as structural changes brought by AI across the memory market become more concrete.
Micron is seen as one of a group of secondary chipmakers that benefit in the next stage of the AI race.
Chi-gyu Hwang
delight@d-today.co.kr