Micron Technology surpassed a market value of $1 trillion for the first time, marking an astonishing surge that has established the leading US memory chip manufacturer as a prominent victor of the AI surge.

Micron's stock recently rose 18percent to $886.6 - a new all-time high - with Tuesday's gain following UBS's hike of its price target on the shares to $1,625 from $535, the highest among 46 brokerages analyzing the company, according to LSEG data.

The milestone highlights memory chips' pivotal role in AI infrastructure and signifies a wider change in the AI industry, as investors look for firms poised to gain from Big Tech's substantial spending plans after initially favoring manufacturers of graphics processors.

Samsung Electronics of South Korea, the leading memory chip manufacturer globally, has already reached the $1 trillion mark, while SK Hynix is also approaching it.

Nvidia manufactures the powerful processors that train and operate AI models, while Micron primarily creates memory chips for storing and transferring data.

The company's rise positions the US as a formidable participant in a memory-chip competition that has predominantly been dominated by Asia until now.

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Micron's shares, traditionally considered among the most cyclical in the semiconductor sector, have surged over eight times in the past year due to robust earnings and supply chain limitations that have enhanced its pricing power.

As tech firms compete to develop artificial general intelligence, clients are investing more in data centers over the long term, leading to a significant surge in demand for advanced memory and storage, resulting in supply shortages and rising prices.

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Micron has announced that its complete supply of high-bandwidth memory (HBM) chips for 2026 has been fully sold, indicating that demand significantly exceeds capacity. The next-generation HBM4 products have entered production.

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The company became one of the largest institutional favorites in the year's first quarter, as indicated by regulatory filings. Approximately 2,440 organizations revealed new roles within the company, such as Rockefeller Capital Management and Schroders.