#MU#

On May 26, 2026, Micron Technology’s market capitalization first surpassed $1 trillion, with the stock price rising more than 19% in a single day. The direct catalyst behind this historic milestone was UBS significantly raising its price target for Micron from $535 to $1,625.

But the manner in which this price target was raised itself reveals a deeper shift beyond day-to-day stock price movements—the market is rethinking how to price a memory-chip company. Whether the logic of switching from “cyclical stocks” to “AI growth stocks” holds true depends on whether three levels of structural changes can reinforce one another.

## Why the valuation framework shifted from segment valuation to discounting overall profits

According to analysis by X user XinGPT, UBS’s prior valuation approach for Micron used a SoTP (sum-of-the-parts) method, breaking the company into two main parts: the HBM business, based on approximately $10k in revenue in 2027.