Micron stock surpassed a $1 trillion marker cap on Tuesday, thanks to a rally fueled by UBS’s highly bullish call for the chipmaker.

The investment bank lifted its price target for the semiconductor firm to $1,625, up from its prior target of $535 a share. The new target implies a 90% increase in Micron over the next 12 months — a rally that’s likely to be driven by surging AI demand and the company’s long-term agreements, analysts wrote in a note on Tuesday.

Shares of Micron soared as much as 18% on Tuesday as the forecast made rounds among investors and wowed stock watchers on social media.

The rally drove Micron to a $1 trillion valuation for the first time. Shares of the memory chip maker are…