The ranking of $1 trillion company is enriched by the presence of another semiconductor giantsa sector that is experiencing very strong growth, thanks to artificial intelligence and the very strong demand for chips for the development of data centers. It’s about Micron Technology, which yesterday crossed the symbolic threshold of one trillion dollars in market capitalization for the first time, recording a leap of 19% and allowing the Nasdaq 100 index to break through the 30,000 point threshold. The long wave involved the entire chip sector, with Marvell Technology, ON Semiconductor, AMD, LamResearch, Intel And Qualcomm which were among the best of the day, allowing the Philadelphia Semiconductor Index to gain 5.5%.
The UBS upgrade that triples the valuation
The spark that set fire to the stock was triggered by a positive opinion from UBS, which almost tripled the target price on the stock to 1,625 dollars per share from 535 USD, citing the opportunity of long-term agreements at partially pre-established prices. This is the highest target among the 46 brokers covering the stock and implies a company valuation close to $1.8 trillion. Analyst Timothy Arcuri argued that the market should begin to apply a more “normal” multiple on Micron as investors gather evidence of structural changes triggered by AI across the entire memory space.
Bottlenecks in the era of artificial intelligence
The main reason for the rally is the shortage of HBM (high-bandwidth memory), which represents a real bottleneck in the expansion of data centers. Micron, in fact, is among the very few companies capable of producing it on a large scale and, recently, the company announced that it has already placed all its supplies until the end of 2026. A supply constraint fueled by the insatiable demand of artificial intelligence applications. The budget numbers confirm this state of affairs: in the second fiscal quarter of 2026 ended February 26, revenues almost tripled year-on-year to $23.86 billion, while adjusted net profit grew nearly eightfold to $14 billion.
The tenth company on the Nasdaq by capitalization
By exceeding 1,000 billion, Micron became the tenth Nasdaq company by capitalization, ahead of Walmart and AMD. Micron would be lower in the rankings (thirteenth) if both the NYSE and Nasdaq markets were considered. Samsung Electronics entered the trillion club in early May 2026, while Nvidia And Taiwan Semiconductor they had already crossed the threshold some time ago. Despite the stellar run, the stock trades at around 15 times expected earnings for fiscal 2026, a multiple that reflects expectations for structural growth in the AI memory market.
Some shadows on the future
Analysts do not fail to highlight the shadows. An 859% gain in twelve months discounts considerable future growth and memory chip markets are historically brutal when the cycle reverses and a company fails to surprise with a “wow” effect. Furthermore, new production capacity from the three major chipmakers could ease supply constraints and squeeze margins. However, according to UBS, storage shortages will persist until at least the second quarter of 2028, a scenario that could further support the Idaho group’s cash generation.
