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Micron joins $1 trillion club, Qualcomm stock jumps on report of ByteDance chip deal

Web Desk Send an email May 26, 2026
0 3 4 minutes read
Micron joins trillion club, Qualcomm stock jumps on report of ByteDance chip deal

Tech stocks rose to start the holiday-shortened week, led by a 16% gain in Micron (MU), which reached a $1 trillion valuation for the first time on Tuesday.

Micron stock surged after UBS analysts published a note that nearly tripled their price target on the stock, arguing that artificial intelligence has changed the way investors should value the company.

That supported a rally in semiconductor stocks across the board, including Qualcomm stock (QCOM), which also got a lift from a report that the chipmaker has reached a deal with TikTok owner ByteDance to supply AI data center chips.

Nvidia (NVDA) was one of the few chip stocks in the red, as the AI industry leader continued to see muted stock action following its quarterly results that beat Wall Street expectations last week. First quarter earnings season has mostly wound down, though a handful of tech companies report results this week, including Zscaler (ZS), Marvell Technology (MRVL), Salesforce (CRM), and Dell Technologies (DELL).

Meanwhile, investors continue to assess what looming mega IPOs from SpaceX (SPAX.PVT), OpenAI (OPAI.PVT), and Anthropic (ANTH.PVT) mean for the booming AI and tech trade.

Last week, Elon Musk’s rocket company SpaceX filed its S-1 IPO prospectus, revealing details of its financials. ChatGPT creator OpenAI is reportedly planning to file for an initial public offering in the coming weeks, and its competitor, Anthropic, is expected to follow soon, with an IPO as early as this fall.

LIVE 4 updates

  • Micron rockets higher, touching $1 trillion valuation, as UBS says it sees roughly 115% upside to stock

    Micron (MU) opened at a record intraday high Tuesday after UBS more than tripled its price target on the memory chipmaker to a Street-high of $1,625, arguing that the AI boom has structurally changed the market for memory.

    The new target is up from $535 and implies roughly 115% upside from Micron’s Friday close of $751. UBS analyst Timothy Arcuri wrote that the market should start putting a more “normal” multiple on Micron as investors get more evidence of the changes AI has driven across the memory complex.

    UBS is not just raising numbers. It’s also arguing that AI has changed the way investors should value the company.

    Micron has historically traded like a cyclical memory stock, with investors worried about boom-and-bust pricing in DRAM and NAND. UBS is arguing that AI demand is changing that setup by giving Micron more visibility into demand and a smoother earnings path.

  • Qualcomm, TikTok owner ByteDance reach chip deal: Report

    Qualcomm stock (QCOM) rose as much as 8% on Tuesday morning after Bloomberg News reported that the chipmaker struck a deal with ByteDance to supply the TikTok owner with chips for AI data centers.

    According to Bloomberg, ByteDance will acquire millions of Qualcomm’s application-specific integrated circuits, or ASICs, and will be one of Qualcomm’s first major customers of those chips.

    Such a deal would help Qualcomm expand into the AI chip space, which is dominated by Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO). It’s all part of hotter competition in the AI chip space as customers like Google (GOOG) also begin offering their own chips.

    Read more here.

  • SpaceX and OpenAI IPOs could push the AI trade deeper into bubble territory

    Yahoo Finance’s Jared Blikre reports:

    Mega initial public offerings from SpaceX (SPAX.PVT) and OpenAI (OPAI.PVT) could push the artificial intelligence trade deeper into bubble territory — just as rising yields make investors more demanding about growth that may take years to arrive.

    Bank of America’s Michael Hartnett estimated that adding mega IPOs to today’s AI leaders could push market concentration from 40% currently toward 48% of US market cap, above the peaks of the Roaring ’20s, Nifty Fifty, Japan ’80s, and dot-com bubble — though still below the railroad boom of the 1880s.

    That is where the bond market comes in. SpaceX and OpenAI would ask investors to pay for growth years into the future, while rising yields make that wait more expensive.

    The inflation backdrop is already close to BofA’s danger zone.

    Read more here.

  • ‘There’s mania’: Strategists weigh in on looming SpaceX IPO

    Yahoo Finance’s Ines Ferre reports:

    SpaceX is striking while the AI boom is hot, and its IPO is taking up all the space.

    Wall Street digested the $2 trillion valuation that the Elon Musk-led rocket and satellite company seeks after filing its IPO prospectus last week.

    The company’s ambitions span from colonizing Mars to creating a network of orbital AI data centers. It sees a total addressable market of $28.5 trillion, mostly coming from AI.

    “This is a company that is investing very heavily, very heavy capex spend into AI infrastructure and into their Starship vehicle, which is going to enable all of these future businesses,” said Chad Anderson, Space Capital founder and CEO. The venture capital firm’s largest holding is SpaceX (SPAX.PVT).

    Nancy Tengler, CEO of Laffer Tengler Investments, which invests in Tesla (TSLA), said her firm is interested in SpaceX, as one of her funds also owns Planet Labs (PL) and Rocket Lab (RKLB).

    “We see it as additive,” she said. “I think ultimately SpaceX and Tesla merge.”

    Read more here.

    FILE PHOTO: A SpaceX Falcon Heavy rocket lifts off carrying a NASA spacecraft to investigate the Psyche asteroid from the Kennedy Space Center in Cape Canaveral, Florida, U.S., October 13, 2023. REUTERS/Joe Skipper/File Photo
    A SpaceX Falcon Heavy rocket lifts off carrying a NASA spacecraft to investigate the Psyche asteroid from the Kennedy Space Center in Cape Canaveral, Fla., Oct. 13, 2023. REUTERS/Joe Skipper/File Photo · Reuters / REUTERS

Web Desk Send an email May 26, 2026
0 3 4 minutes read

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