{"id":132960,"date":"2026-06-28T15:44:49","date_gmt":"2026-06-28T15:44:49","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2026\/06\/28\/why-wall-street-thinks-us-memory-maker-micron-is-the-next-nvidia\/"},"modified":"2026-06-28T15:45:50","modified_gmt":"2026-06-28T15:45:50","slug":"why-wall-street-thinks-us-memory-maker-micron-is-the-next-nvidia","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2026\/06\/28\/why-wall-street-thinks-us-memory-maker-micron-is-the-next-nvidia\/","title":{"rendered":"Why Wall Street thinks US memory maker Micron is the next Nvidia"},"content":{"rendered":"

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Micron, the Boise, Idaho-based reminiscence chip maker, has captured Wall Avenue\u2019s coronary heart. Whether or not the love affair endures will closely rely on how lengthy the AI-driven provide crunch for reminiscence chips lasts.<\/p>\n

Micron guarantees that it has shored up its place for the long run, which might enable it to resist a sudden drop in demand or overcapacity of provide. And Wall Avenue has develop into a believer, serving to Micron briefly surpass the market valuation of Meta and Tesla<\/a> for the primary time on Thursday, although it floated again down by Friday to almost match them.<\/p>\n

Particularly Micron closed Friday\u2019s buying and selling with a market cap near $1.27 trillion, whereas Meta was at $1.39 trillion and Tesla was at $1.42 trillion. Micron\u2019s inventory has soared over 236% prior to now month alone, closing Friday at $1,132 a share. Compared, it spent years upon years earlier than mid-2025 at beneath $100 a share.<\/p>\n

It\u2019s a dizzying rise for a corporation that almost all shoppers related to the tiny reminiscence playing cards that, again within the day, have been generally wanted to spice up PCs, smartphones, or different system storage.<\/p>\n

Wall Avenue isn\u2019t sweating over that product line. Micron is benefiting from the AI knowledge middle buildout growth that has created a scarcity of system reminiscence chips, each DRAM and NAND, which Micron makes, notably Excessive-Bandwidth Reminiscence (HBM). A single AI server requires magnitudes extra reminiscence than a laptop computer.<\/p>\n

AI system makers like Nvidia, in addition to the hyperscalers constructing their very own methods, are shopping for up massive portions of reminiscence, similar to Microsoft, Amazon AWS, Google, Meta and Oracle. That is forcing all the opposite firms who want reminiscence to hoard it as nicely, from PC makers like Dell and HP, to different kinds of system makers.<\/p>\n

This lack of provide, which has been dubbed RAMageddon<\/a>, is predicted to persist\u00a0into 2027<\/a>. And it\u2019s already driving up the worth of client electronics like Apple merchandise and Xbox consoles.<\/p>\n

With the entire tech trade clamoring for extra reminiscence, Micron\u2019s delivered blockbuster third-quarter earnings final week. Income quadrupled year-over-year to $41.45 billion, and income skyrocketed from $1.88 billion to $28.2 billion over the identical interval. Micron additionally supplied a optimistic outlook, forecasting fourth-quarter income of between $49 billion and $51 billion.<\/p>\n

And Wall Avenue, which has been keen to search out extra public AI-related firms that will do in addition to Nvidia, grew to become much more enamored.<\/p>\n

The historic downside for reminiscence chip makers like Micron and Samsung is that constructing out manufacturing services to extend capability is a time-consuming, costly endeavor. And demand typically falls simply as firms can improve capability, making a glut and subsequent worth drop.<\/p>\n

Micron acquired forward of any AI bust chatter by emphasizing a collection of long-term provide agreements, together with with Nvidia and AI lab Anthropic<\/a>, that may presumably defend it. The corporate mentioned in its earnings presentation that it has signed 16 strategic buyer agreements throughout the information middle, client, and auto market segments, which it expects to fundamentally transform its business model. <\/a><\/p>\n

That appeared to persuade a variety of analysts that this firm could possibly be one other long-term, worthwhile funding. In a analysis observe, William Blair tech analyst Sebastien Naji famous demand development continues to outpace the speed that new cleanroom house can come on-line.<\/p>\n

\u201cGiven the sturdy chance of continued ASP development within the coming quarters and bettering income visibility due to a quickly increasing set of long-term agreements (SCAs) with key clients, we see potential for extra sturdy earnings development and reiterate our Outperform score,\u201d Naji wrote.<\/p>\n

Whether or not Micron actually can maintain itself for long-term with out a bust cycle stays to be seen. However for a short second on Thursday, this U.S. firm was extra beneficial than a number of the trade\u2019s giants.<\/p>\n<\/div>\n

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