Micron topped a $1 trillion market value for the first time on Tuesday as shares popped 19%, driven by insatiable artificial intelligence demand for its memory chips.

The stock surge came as UBS tripled its price target on the stock from $535 to $1,625 a share, citing long-term agreement opportunities with partially fixed pricing.

"We believe the market will start to put a more 'normal' multiple on the stock and MU will continue to re-rate higher as more details emerge about the structural changes AI has driven to the entire memory complex," the firm wrote.

The new price target suggests shares could more than double from Friday's close.

Micron is among a fresh crop of chipmakers benefiting from the next stage of the AI race. Investors are snapping up stocks tied to central processing units and memory, needed to run and process agentic workloads, in a battleground once dominated by Nvidia.

Explosive demand for AI has led to a global memory shortage that chipmakers like Micron are struggling to fill. That's allowed Micron and peers SK Hynix and Samsung to hike prices. Micron's stock has more than tripled year to date.

Just a few weeks ago, Micron surpassed a $700 billion market valuation and soared into the ranks of most valuable U.S. tech firms.

Intel, after missing out on the early AI rally, is up more than sixfold and trading near all-time highs. The American chipmaker is in the middle of a major turnaround following a significant investment from the U.S. government last summer.

Qualcomm, Advanced Micro Devices and Marvell Technology have also reached new highs.

Correction: UBS tripled its price target on Micron from $535 to $1,625 a share. An earlier version mischaracterized the move. Just a few weeks ago, Micron surpassed a $700 billion market valuation. An earlier version misstated the figure.