Micron becomes fifth chip stock to reach $1 trillion market cap after UBS raised price target to $1,625, implying more than a doubling from Friday's close.

Micron's stock surged as much as 18.7% today, driven by UBS lifting its price target from $535 to $1,625, a street-high figure that implies the stock will more than double from its Friday closing price.

In its most recent quarter, Micron's revenue jumped 196% to $23.9 billion (ahead of estimates at $19.2 billion), operating margin expanded to 67.6% from 22%, and net income jumped by nearly 10x to $13.8 billion. UBS noted that long-term memory supply agreements with buyers such as Nvidia could lock in pricing and demand visibility through 2029.

The stock is trading at a forward P/E of just 15, significantly cheaper than chip stock peers and other big tech stocks, despite growing much faster. The UBS price target implies Micron's market cap reaching $1.8 trillion.