AI is creating new trillion-dollar companies.

Micron became one of the trillion-dollar companies in the US after May 26th. Photo: Reuters .

Micron, one of the world's largest memory chip manufacturers, surpassed its $1 trillion market capitalization for the first time on May 26th. The company's stock surged 19%, driven by unceasing AI demand for its memory chips, DRAM, and NAND Flash.

This increase comes after UBS raised its price target for Micron shares from $535 to $1,625 per share, a threefold increase. The bank believes Micron has the opportunity to secure long-term agreements at partially fixed prices.

UBS believes the market may have underestimated Micron for a long time, but AI is completely changing the company's role. "MU (Micron stock) will continue to be valued higher as more and more structural changes AI brings to the entire memory industry," the bank stated.

AI has helped transform memory chips into a more stable and strategic growth industry, after previously experiencing volatile price fluctuations. According to CNN , the new price target means Micron shares could still more than double from their closing price on May 22nd.

Micron is among the new chip manufacturers benefiting from the next phase of the AI race. Investors are now pouring money into stocks related to CPUs and memory chips, essential components for running and processing agentic AI tasks. This field was once almost entirely dominated by NVIDIA.

Unlike the early stages of AI generation, the wave of agentic AI demands significantly larger amounts of memory so that models can remember context, process multiple tasks simultaneously, and operate in real time. This makes high-bandwidth memory (HBM) chips one of the most critical components in today's AI infrastructure.

Previously, GPUs were often the crucial factor driving AI development. However, without sufficient DRAM and HBM, AI server clusters will be unable to fully utilize the performance of their GPUs, even with the most powerful chips from NVIDIA.

The booming demand for AI has led to a global shortage of memory chips, making it difficult for companies like Micron to meet supply demands. This has also allowed Micron and competitors such as SK Hynix and Samsung to raise product prices. Since the beginning of the year, Micron's stock has more than tripled.

Just a few weeks ago, Micron surpassed the $700 billion market capitalization mark, joining the ranks of America's most valuable technology companies. Meanwhile, Intel, a company that missed the early wave of AI, has now increased more than sixfold and is trading near its all-time high.

This chipmaker is undergoing a major restructuring following significant investment from the US government last summer. Additionally, Qualcomm, AMD, and Marvell have all reached new record high prices.