Shares of Micron Technology Inc (NASDAQ:MU) jumped 19.29% on Tuesday, May 26, climbing to a new all-time high of $916.80 and pushing the semiconductor group’s market capitalisation above the symbolic $1 trillion threshold for the first time.
The rally has extended an extraordinary run for the stock, which has gained 70% over the past month and 117% during the last three months.
A major driver behind Tuesday’s surge was a bullish research note released by UBS ahead of the opening of U.S. markets. Analyst Timothy Arcuri almost tripled his target price on Micron shares, arguing that the company could generate more than $400 billion in cumulative free cash flow between 2027 and 2029.
UBS highlighted a significant structural shift within the memory-chip industry, noting that long-term supply agreements now account for an increasingly large portion of DRAM volumes across the sector. According to the bank, this marks an unprecedented change that could substantially reduce the historically cyclical nature of the memory market.
Mizuho Bank echoed the positive outlook, estimating that several non-HBM memory markets remain undersupplied by between 30% and 50%.
The strong forecasts are supported by Micron’s latest financial performance. During the second fiscal quarter of 2026, the company reported record revenue of $23.86 billion, representing year-over-year growth of 196%, while earnings per share reached $12.20, comfortably ahead of analyst expectations of $8.79.
Micron also revealed that its entire supply of next-generation HBM4 memory products for 2026 has already been sold under firm contracts, with customers increasingly committing to supply agreements lasting between three and five years.