Micron Technology shares rose 6.5% in pre-market trading after UBS raised its price target on the memory chipmaker from $535 to $1,625, marking the highest level on Wall Street.

This target price suggests Micron's stock could more than double from its pre-market level of around $800, implying a market capitalization of approximately $1.8 trillion. This projection indicates Micron is poised to solidify its recent position among the world's largest companies and become one of the most significant players in the AI sector.

Analyst Timothy Arcuri noted, "We believe that as more evidence emerges of AI driving structural changes across the entire memory landscape, the market will begin to apply more 'normal' valuation multiples to the stock, leading to continued upward revisions in Micron's valuation."

He added that demand for memory chips at favorable price levels "will enable Micron to trade some near-term revenue for demand visibility and achieve smoother earnings performance."

As of the previous close, Micron's stock has surged over 160% year-to-date.