TradingKey – On Tuesday Eastern Time, U.S. chip stocks surged collectively, and Micron (MU) closed up 19.29%, not only hitting an all-time high share price but also driving its market capitalization past $1 trillion for the first time.

Year-to-date, Micron’s stock price has risen 184%. On Tuesday, UBS (UBS) analyst Timothy Arcuri raised Micron’s 12-month price target from $535 to $1,625 in a research report, a 204% increase and the highest target on Wall Street. This forecast implies a market capitalization of $1.8 trillion, even exceeding Meta and Tesla’s (TSLA) current market capitalization levels, which means Micron would become one of the largest companies in the world.

However, the core logic behind UBS’s price target hike for Micron…