Micron Stock Nears Trillion Valuation After UBS Boost

Micron Technology (MU) shares rose after UBS raised its price target and CEO Sanjay Mehrotra outlined an expansive U.S. fab plan, intensifying investor focus on a potential trillion-dollar valuation and tight AI-memory markets.

Market Surge and Valuation

Micron shares have climbed about 155% year to date, ranking the company among the S&P 500’s top performers. Its market capitalization reached approximately $847 billion in late May 2026, making it one of the largest U.S. semiconductor firms by value.

The company reported fiscal second-quarter revenue of $23.9 billion, nearly triple the prior year, while earnings per share rose from $1.41 to $12.07. Market participants attribute these gains to strong AI memory demand, especially for high-bandwidth memory (HBM). On May 26, UBS analyst Timothy Arcuri raised his 12-month price target by roughly 200%, accelerating the rally.

The scale of recent results has shifted investor perception, with some now viewing Micron as an AI-infrastructure supplier given its quarterly revenue and earnings rival prior annual figures. This repositioning, combined with constrained supply, has driven rapid revaluation despite wide divergence in sell-side models.

Analyst targets remain dispersed. A consensus snapshot from 46 analysts shows an average 12-month target near $287 with a BUY rating, while other compilations place consensus closer to $613 and include at least one target as high as $1,100. Street models project earnings per share around $58 this year and about $100 by fiscal 2027, implying a forward price-to-earnings ratio near 8 at recent prices, which some investors consider modest relative to earnings growth.

U.S. Expansion and Supply

In a Bloomberg interview on May 21, CEO Sanjay Mehrotra detailed a roughly $200 billion U.S. investment plan over about 10 years. It includes expanding long-lifecycle DRAM capacity at Manassas, Virginia; a leading-edge DRAM fab in Boise, Idaho, expected to ship first wafers by mid-2027; a second Boise fab slated for first wafers by the end of 2028; and a “mega cluster” of four fabs planned near Syracuse, New York. Mehrotra said U.S. sites should supply about 40% of company-wide production within 10 years, up from roughly 10% today, and that these investments will create 90,000 new U.S. jobs.[3]

This buildout supports the thesis of tight supply. Micron reportedly meets only half to two-thirds of key customers’ medium-term needs. Analysts expect meaningful new industry supply to ramp materially only around 2028, sustaining elevated DRAM and HBM pricing through 2026 unless macroeconomic conditions or capital spending plans change.

At the same time, the multiyear U.S. expansion carries execution and capital-intensity risks. Heavy upfront spending, complex fab timelines, and long industry lead times contribute to the wide range of price targets and explain why some sell-side models lag the market’s repricing.

The market’s next test will be whether Micron can deliver the U.S. buildout on schedule and scale advanced HBM and DRAM volumes fast enough to sustain current margins and justify the recent valuation increase.