Micron market cap tops $1 trillion on AI demand

2026-05-26

Micron tops $1 trillion as AI demand lifts memory stocks

Micron Technology, the U.S. memory chip maker, on the 26th became the first time its market capitalisation topped $1 trillion ($159 trillion yen). Against the backdrop of rising demand for artificial intelligence (AI) data centres, expectations are growing that memory shortages will persist in the medium to long term, drawing buying into related stocks.

Shares at one point rise 19%

In U.S. trading on the 26th, Micron shares at one point rose 19% from the previous close to $891.27. Based on the day's high, its market capitalisation was about $1.005 trillion. UBS's decision to raise its target price for the company to $1,625 from $535 provided a buying catalyst.

Outlook remains bullish

At Citi, analyst Atif Malik expects price increases for DRAM, the semiconductor memory used for short-term storage, to continue through 2027. The firm had also raised its target price for Micron shares to $840 on the 18th.

Micron climbed to 11th place in the ranking of U.S.-listed companies by market value, surpassing Walmart at about $950 billion. Its share price has more than tripled from the end of last year.

Funds continue to pour in

Memory stocks are rising globally. South Korea's Samsung Electronics already has a market capitalisation of more than $1 trillion, while Japan's Kioxia Holdings stood at 3.4 trillion yen at the close on the 26th, ranking fourth among Japan-listed companies behind Toyota Motor, SoftBank Group and Mitsubishi UFJ Financial Group.

Money from hedge funds and individual investors is also flowing into memory stocks. Appaloosa, run by David Tepper, said in a filing with the U.S. Securities and Exchange Commission (SEC) that it increased its Micron holdings in the January-March period.

In the past month, $7.4 billion has flowed into the DRAM exchange-traded fund (ETF) run by U.S. Roundhill Investments, which invests in major memory stocks globally including Micron.

Historically, however, memory has alternated between periods of higher output and slowing demand, repeatedly swinging between tight supply and easing conditions. This latest surge in share prices is also supported by expectations that AI-related demand growth will continue in the medium to long term and that the rise in memory prices will persist.

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