Overview
- A UBS analyst nearly tripled Micron’s price target to $1,625, triggering an about‑19% one‑day jump that briefly put Micron above $1 trillion on May 26 and helped reprice the sector.
- SK Hynix crossed the $1 trillion mark on May 27 after its shares jumped, completing three memory makers that hit the milestone in rapid succession following rising memory prices.
- The driver is high‑bandwidth memory, or HBM, the fast memory used next to AI accelerators; Micron and its two rivals report most 2026 HBM capacity is booked, giving near‑term revenue visibility.
- Analysts warn the rally could reverse because memory is historically cyclical and large capacity ramps, faster competitor production or a slowdown in AI spending would lower prices and margins.
- The three companies now dominate HBM and most advanced memory production, and their capex plans and quarterly results — including Micron’s June report — will determine whether valuations hold.