Key Points
-
Micron crossed $1 trillion in market cap for the first time after UBS tripled its price target to $1,625.
-
The Dow slipped as oil prices dropped 2.3% on continued Iran negotiation developments.
-
The equal-weighted and cap-weighted S&P 500 ETFs traded roughly even, suggesting broad market participation outside of Micron’s surge.
- 10 stocks we like better than Micron Technology ›
The stock market is having a split-personality kind of day, and one company is responsible for most of the drama.
As of 1:22 p.m. ET, the Nasdaq Composite (NASDAQINDEX: ^IXIC) index is up 1% and the S&P 500 (SNPINDEX: ^GSPC) has climbed 0.5%. The Dow Jones Industrial Average (DJINDICES: ^DJI), meanwhile, is down 0.3%. It actually opened in the green but slowly lost its grip throughout the morning.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
The divergence largely comes down to one company: Micron Technology (NASDAQ: MU).
^IXIC data by YCharts
Micron’s trillion-dollar moment
Micron is up more than 18% on a single analyst call. UBS’s Timothy Arcuri raised his price target on the memory-chip maker from $535 to $1,625. Arcuri essentially tripled his target and declared that AI has permanently changed how Micron deserves to be valued.
Chiefly, the analyst likes Micron’s newfound preference for multi-year supply deals. Micron is known as a highly cyclical stock, but the new pricing scheme could end the stock’s wild swings.
Arcuri did hedge his call. If high-bandwidth memory demand weakens, he warned, the stock could fall to $250. So there is that.
Image source: The Motley Fool.
The rally pushed Micron’s market capitalization past $1 trillion for the first time, placing it among the ten largest U.S. companies.
Here is the wild part: Even with a trillion-dollar market cap, Micron only carries a 2% weight in the Nasdaq Composite and 1.5% in the S&P 500. That is a fraction of the 6%-plus weights held by most of the classic Magnificent 7 stocks. Yet, Micron contributed more to both indexes today than any of those giants. That’s pretty rare.
Over on the Dow, the ongoing Iran situation that lifted markets last week is now weighing on oil prices and, by extension, energy stocks. Crude dropped 2.3% on further progress in Strait of Hormuz negotiations. The sentiment was much brighter over the weekend, though. The Iran talks seemed to go well, until both sides launched angry words and new attacks.
Caterpillar (NYSE: CAT) rose 2.9% and provided a partial offset due to its heavy weighting in the price-weighted index, but with 22 of 30 Dow components in the red, there was only so much the construction-equipment giant could do. Most of the Dow members are within 1% of last Friday’s closing prices.
A trillion-dollar debut
The Nasdaq and S&P 500 are green because of Micron. The Dow is red because of oil. That is the session in two sentences.
What makes today interesting is how unusual it is. Micron is not a mega-cap titan. I mean, it just crossed that threshold, today, in real time. And yet it single-handedly moved the needle on two major indexes more than Apple or Nvidia did.
The equal-weighted Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP) and the cap-weighted Vanguard S&P 500 ETF (NYSEMKT: VOO) traded roughly even, which suggests that outside of Micron’s fireworks, the market’s participation was actually pretty broad. That is a healthy sign.
Tuesday’s market moves reminded long-term investors that analyst upgrades can move markets in dramatic fashion. The underlying thesis still requires execution, though. Micron’s new contract structures may indeed smooth out its earnings trajectory. Or high-bandwidth memory demand may cool. Micron’s trillion-dollar valuation now prices in considerable optimism.
I’m not saying it’s wrong, just suggesting that UBS’s tripled price target might be a bit much.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $477,813!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,320,088!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 208% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 26, 2026.
Anders Bylund has positions in Invesco S&P 500 Equal Weight ETF, Micron Technology, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Caterpillar, Micron Technology, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
