Why Wall Street thinks US memory maker Micron is the next Nvidia
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Micron briefly surpassed Meta and Tesla in market cap on Thursday, closing Friday at approximately $1.27 trillion with shares at $1,132 after a 236% surge in the past month alone
- Micron's Q3 revenue quadrupled year-over-year to $41.45 billion with profits jumping from $1.88 billion to $28.2 billion, and the company forecast Q4 revenue of $49 billion to $51 billion
- The AI memory shortage — dubbed 'RAMageddon' and covering DRAM, NAND, and High-Bandwidth Memory — is predicted to persist into 2027 and is already driving up prices on Apple products and Xbox consoles
- Hyperscalers and chipmakers including Nvidia, Microsoft, Amazon AWS, Google, Meta, and Oracle are hoarding memory, forcing downstream PC makers like Dell and HP to stockpile as well
- Micron has signed 16 strategic customer agreements across data center, consumer, and auto segments — including with Nvidia and AI lab Anthropic — to insulate itself against a potential bust cycle
- William Blair tech analyst Sebastien Naji reiterated an Outperform rating, writing that demand growth continues to outpace new cleanroom capacity and that expanding long-term agreements could deliver more durable earnings growth
Why it matters: Micron's $1.27 trillion valuation and 236% monthly stock surge depend on whether the 'RAMageddon' supply crunch holds into 2027 as predicted; the 16 long-term supply agreements with buyers like Nvidia and Anthropic are Micron's explicit hedge against the boom-bust memory cycle that has bankrupted its peers in prior downturns.
Ask SkimNews
