Wall Street Eyes Micron as Next AI Boom Winner
Original: Why Wall Street thinks US memory maker Micron is the next Nvidia
Why This Matters
Demonstrates how AI infrastructure buildout creates sustained opportunities for semiconductor suppliers beyond processing chips, reshaping investor focus toward memory chip makers.
Micron, a US memory chip maker, has surged 236% in one month to $1.27 trillion market cap, briefly exceeding Meta and Tesla, driven by AI data center demand for DRAM and NAND chips predicted to persist through 2027.
Micron Technology, based in Boise, Idaho, has become a Wall Street favorite due to the AI-driven shortage of memory chips. The company's stock price soared from below $100 per share before mid-2025 to $1,132 per share by Friday, June 28, 2026, representing a 236% gain in one month. Micron briefly surpassed Meta ($1.39 trillion) and Tesla ($1.42 trillion) in market valuation before settling at approximately $1.27 trillion. The surge reflects strong third-quarter earnings announced last week: revenue quadrupled year-over-year to $41.45 billion, while net profit increased dramatically from $1.88 billion to $28.2 billion. The company forecasted fourth-quarter revenue between $49-51 billion. Micron's growth is tied to the AI infrastructure buildout, where major players like Nvidia, Microsoft, Amazon AWS, Google, Meta, and Oracle are purchasing vast quantities of High-Bandwidth Memory (HBM), DRAM, and NAND chips. This demand has created supply constraints lasting into 2027, a phenomenon called RAMageddon, driving up prices for consumer electronics including Apple products and Xbox consoles. Historically, memory chip makers faced cyclical challenges where demand drops as capacity increases, creating overcapacity and price collapses. Micron addressed these concerns by emphasizing long-term supply agreements to sustain growth beyond the current AI boom.