Is Micron a Trillion-Dollar Company in the Making?

Few artificial quality (AI) stocks person seen much superior heap into them successful specified a abbreviated play than Micron Technology (NASDAQ: MU). The memory-chip shaper has seen its banal soar 250% since the commencement of September, and present sports a marketplace headdress of implicit $460 billion.

With the banal already 44% higher done the archetypal fewer weeks of 2026, investors whitethorn beryllium wondering whether it's acceptable to surpass $1 trillion successful the adjacent future. Another doubling volition conscionable astir bash it.

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Stock prices are forward-looking. To find whether Micron tin scope a $1 trillion valuation, it's important to recognize what's driving its terms higher and whether those factors volition prolong its maturation good into the future.

Micron has been 1 of the biggest beneficiaries of the increasing request for precocious bandwidth representation (HBM). These representation chips are packaged with graphics processing units (GPUs) and AI accelerators for AI grooming and inference. With the increasing request for compute from AI developers, hyperscalers person accrued their spot budgets, which, successful turn, has accrued request for Micron's HBM.

The full manufacture present faces a shortage of DRAM representation chips. These not lone constitute the gathering blocks of the high-bandwidth representation chips Micron makes but are besides cardinal components successful different computing hardware, including PCs and smartphones.

As a effect of the shortage, Micron has seen the prices it tin complaint for its chips emergence considerably. The company's mean selling terms for DRAM chips accrued 20% sequentially successful the archetypal 4th and gross borderline expanded to 57% from 46%. With the pricing tailwind, Micron's net per stock grew 167% to $4.78 past 4th and operating currency travel ballooned to $8.4 billion.

The company's outlook suggests 2026 could beryllium adjacent better. Management guided gross borderline to grow to 68% this quarter, and net per stock volition scope $8.42. Management besides said the proviso of representation chips volition stay choky beyond the 2026 calendar year.

That quality kicked disconnected different tally successful Micron's banal price, and analysts accrued their expectations for fiscal 2026 and 2027 earnings. Wall Street present sees Micron generating $33.73 per stock for 2026 and $43.54 successful 2027.

Micron banal trades astatine astir 12.2 times analysts' 2026 net expectations and 9.4 times 2027 net expectations. That mightiness look cheap, compared to different AI semiconductor stocks, but Micron's concern isn't arsenic differentiated arsenic those of high-end chipmakers.