On Tuesday, Micron Technology Inc.’s (NASDAQ:MU) explosive rally into the trillion-dollar club sparked fresh optimism around AI-driven semiconductor stocks, with Jim Cramer calling it the start of a “new era” and investor Ross Gerber arguing the stock still has room to run.
AI Memory Boom Fuels Micron Rally
Shares of Micron surged nearly 20% on Tuesday, pushing the memory-chip maker past a $1 trillion market capitalization for the first time as Wall Street doubled down on the artificial intelligence infrastructure boom.
The rally came after UBS sharply raised its price target on Micron to $1,625 from $535.
Analyst Timothy Arcuri said long-term supply agreements and rising demand for high-bandwidth memory, or HBM, could stabilize Micron’s historically volatile earnings.
HBM chips are critical for AI accelerators and data centers powering generative AI systems.
The development also comes just days after President Donald Trump praised the chipmaker during a rally in New York.
Ross Gerber Says Micron Is ‘Too Cheap’
Gerber reacted to the move on X, saying Micron was still undervalued despite the massive rally.
“Holy chip stocks!!!! Micron starts the day up $100,” Gerber wrote. “We’ve been saying it’s too cheap for some time.”
He continued, “UBS is confirming the $100 eps of 2027 is very doable. That gives me a $1500 target up from $1000. 15 times 27 eps for $MU.”
Jim Cramer Says AI Has Changed The Market
Meanwhile, Cramer said Micron’s entry into the trillion-dollar club reflects how AI is reshaping investor priorities across the semiconductor industry.
“We’re on the verge of a new era, where I think the trillion-dollar club may be a heck of a lot easier to join,” Cramer said on CNBC’s “Mad Money.”
“AI has changed the order of things,” he added.
Cramer also pointed to Micron’s dominance in high-bandwidth memory chips used in AI data centers, saying, “No wonder its market cap touched a trillion today.”
Shay Boloor Says Memory Is Becoming Core AI Infrastructure
Futurum Group Chief Market Strategist Shay Boloor also weighed in on X, arguing that investors are beginning to realize memory chips are becoming a foundational layer of the AI economy.
Boloor said growing AI token usage, inference demand and next-generation accelerators are increasing the amount of HBM required per system, driving higher memory spending across the industry.
“With only three major HBM suppliers in the world, the entire memory complex is getting re-rated,” he wrote.
Price Action: Shares of Micron Technology closed Tuesday up 19.29% at $895.88 and gained another 2.08% in after-hours trading to $914.53, according to Benzinga Pro.
Benzinga Edge Stock Rankings show that MU has a strong Quality score of 97.55%, with a positive price trend across short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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