Micron Surge Drives Tech Stocks to Record Highs Amid AI Boom

New York, May 26 (CNA) - The U.S. stock market and technology sector hit record highs today, driven by surging demand for memory chips fueled by the artificial intelligence (AI) wave. The Nasdaq, S&P 500, and PHLX Semiconductor Index all reached new peaks. As the market welcomes new AI startup listings and the potential end of the U.S.-Iran conflict, high-tech stocks remain the primary focus for investors.

UBS Group recently expressed optimism that the AI wave would drive memory chip demand, significantly raising its target price for memory manufacturer Micron Technology to $1,625, more than double its trading price. Micron surged 19.29% today to reach $895.88.

Market sentiment remains bullish on tech firms, with AMD, Marvell Technology, Qualcomm, and Intel rising 7.78%, 6.08%, 4.48%, and 3.68% respectively on the 26th.

Driven by Micron's rally, the Nasdaq and PHLX Semiconductor Index continued to set historical highs. The Nasdaq rose 1.19% to close at 26,656.18 points, while the PHLX Semiconductor Index jumped 5.53% to 12,876.91 points. The S&P 500 rose 0.61% to close at 7,519.12 points, also setting a record.

UBS reports indicate that the market now views stock price doubling as the "new normal." As the structural transformation of the AI industry becomes clearer, it is driving the entire memory sector, and Micron's rating is expected to continue rising.

Micron's market capitalization has increased by approximately 80% in one month. A Wall Street Journal analysis notes that Micron doubled its value in just 48 days, whereas Nvidia took 490 days.

Micron's market cap reached $1.02 trillion on the 26th. If investors follow UBS's buy recommendation, it is highly likely to surpass asset manager Berkshire Hathaway and join the ranks of the world's top 10 companies alongside Nvidia and TSMC. At that point, the top 10 list, excluding Saudi Aramco, would consist entirely of AI-related firms.

The AI wave has boosted hardware makers like Nvidia and TSMC, as well as big data giants like Alphabet (Google), Microsoft, and Amazon. Now, the global memory chip shortage is sending related stocks soaring, with South Korean giants SK Hynix and Samsung also emerging as major winners of the AI boom.