Micron Stock Could Soon Join the $2 Trillion Club, According to This Analyst

For all these years, Micron Technology (MU) was viewed as one of the semiconductor industry’s most cyclical companies, riding the booms and busts of the memory chip market. But the artificial-intelligence (AI) revolution is rapidly changing that narrative. Surging demand for high-bandwidth memory chips used in AI data centers, combined with tightening industry supply and long-term agreements, is now convincing Wall Street that Micron may deserve to be valued more like an AI infrastructure giant than a traditional chipmaker.

That shift in perception reached a new level this week after UBS raised its price target on Micron to a Street-high $1,625 from $535 and reiterated its “Buy” rating, implying a potential market cap of around $1.8 trillion, a valuation that would place the company within striking distance of the exclusive $2 trillion club.

Moreover, UBS analyst Timothy Arcuri said long-term agreements across the memory industry are improving pricing visibility and stabilizing earnings, driven largely by booming AI-related demand for high-bandwidth memory chips. The firm now expects Micron to generate more than $400 billion in free cash flow between 2027 and 2029, while forecasting earnings per share of $155 in 2027, $167 in 2028, and $77 in 2029.

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About Micron Technology Stock

Micron Technology is a semiconductor company that designs, develops, manufactures and sells memory and storage products globally, including DRAM, NAND flash memory, HBM, solid-state drives (SSDs) and other memory modules. Headquartered in Boise, Idaho, Micron operates multiple business units serving cloud/data center, mobile and client, automotive/embedded, and enterprise segments worldwide. Micron has hit the $1 trillion market cap, putting it among the largest and most valuable players in the global semiconductor industry.

Shares of Micron Technology have delivered one of the most extraordinary rallies in the semiconductor sector, fueled by surging investor enthusiasm around AI and soaring demand for high-bandwidth memory chips. On May 26, the stock surged 19.3% intraday, while registering a record high of $916.80 after UBS issued a Street-high price target of $1,625, helping Micron briefly surpass the $1 trillion market cap milestone for the first time.

The momentum has been staggering even by semiconductor-industry standards. Micron shares have climbed 72.2% over the past month alone, reflecting growing confidence that AI-driven demand and long-term supply agreements could structurally improve the memory-chip market.

On a broader basis, the stock has massively outperformed the market over the past year with 837.14% returns. Meanwhile, year-to-date (YTD) shares have surged 216.46%, making Micron one of the top-performing large-cap technology stocks of 2026.

However, the stock still seems to be trading at a discount compared to industry peers at 12.99 times forward earnings.

Better-than-Expected Q2 Performance

Micron Technology reported its fiscal second quarter 2026 (ended Feb. 26, 2026) results on March 18, delivering solid performance, driven by extraordinary demand for AI-related memory products.

The company posted revenue of $23.86 billion, representing a massive year-over-year (YOY) increase of 196.4%. This surge reflects a sharp rise in DRAM and NAND pricing alongside explosive demand for HBM used in AI data centers.

Profitability expanded even more dramatically. Micron reported adjusted EPS of $12.20, up roughly 682.1% YOY from about $1.56 in fiscal Q2 2025 and exceeding expectations.

Segment-wise, the Cloud Memory Business Unit generated $7.8 billion in revenue, representing an increase of roughly 163% YOY, while gross margins improved to 74% from 55%.

Moreover, the Core Data Center Business Unit delivered one of the strongest growth trajectories, with revenue rising to $5.7 billion from $1.8 billion, with margins also expanding meaningfully as gross margin improved to 74% from 47%.

In the Mobile and Client Business Unit, revenue reached $7.7 billion, marking a sharp 244.9% YOY increase. This segment’s gross margin rose dramatically to 79% from just 15%.

The Automotive and Embedded Business Unit also posted strong growth, with revenue climbing to $2.7 billion from $1 billion.

Management further issued exceptionally strong guidance for fiscal Q3 2026, signaling continued momentum. The company expects revenue of around $33.5 billion (plus or minus $750 million) and EPS of $19.15 (plus or minus $0.40).

Also, the consensus EPS estimate of $57.82 for fiscal 2026 reflects an increase of 652.86%, while the EPS estimate of $99.23 for fiscal 2027 indicates a 71.62% rise YOY.

What Do Analysts Expect for Micron Stock?

In addition to UBS showing optimism and boosting its price target, Barclays raised its price target on Micron Technology to $1,175 from $675 while reiterating its “Overweight” rating, citing the company’s shift toward long-term strategic customer agreements as a major positive for the sustainability of the memory-chip cycle.

Also, Mizuho reiterated its “Outperform” rating and $800 price target on Micron Technology, citing continued strength in AI-driven memory demand and a persistently undersupplied market through 2026 and 2027.

Overall, MU has a consensus “Strong Buy” rating. Of the 41 analysts covering the stock, 31 advise a “Strong Buy,” five suggest a “Moderate Buy,” and five analysts are on the sidelines, giving it a “Hold” rating.

While the stock has surged past the average analyst price target of $628.20, UBS’ Street-high target price of $1,100 suggests that the stock could rally as much as 21.38%.