Why Wall Street thinks US memory maker Micron is the next Nvidia
Eager to find more public AI-related companies that may do as well as Nvidia, Wall Street investors think they've found a winner with Micron. Micron, the Boise, Idaho-based memory chip maker, has captured Wall Street's heart. Whether the love affair endures will heavily depend on how long the AI-driven supply crunch for memory chips lasts.
Key Takeaways
- Micron promises that it has shored up its position for the long term, which would allow it to withstand a sudden drop in demand or overcapacity of supply.
And Wall Street has become a believer, helping Micron briefly surpass the market valuation of Meta and Tesla for the first time on Thursday, though it floated back down by Friday to nearly match them.
- It's a dizzying rise for a company that most consumers associated with the tiny memory cards that, back in the day, were commonly needed to boost PCs, smartphones, or other device storage.
- And it's already driving up the price of consumer electronics like Apple products and Xbox consoles.
With the whole tech industry clamoring for more memory, Micron's delivered blockbuster third-quarter earnings last week.
- The historic problem for memory chip makers like Micron and Samsung is that building out manufacturing facilities to increase capacity is a time-consuming, expensive endeavor.
And demand often falls just as companies can increase capacity, creating a glut and subsequent price drop.
- But for a brief moment on Thursday, this U.
Stats & Key Facts
- #Specifically Micron closed Friday's trading with a market cap close to $1.
- #27 trillion, while Meta was at $1.
- #39 trillion and Tesla was at $1.
- #Micron's stock has soared over 236% in the past month alone, closing Friday at $1,132 a share.
Micron promises that it has shored up its position for the long term, which would allow it to withstand a sudden drop in demand or overcapacity of supply. And Wall Street has become a believer, helping Micron briefly surpass the market valuation of Meta and Tesla for the first time on Thursday, though it floated back down by Friday to nearly match them. Specifically Micron closed Friday's trading with a market cap close to $1.
27 trillion, while Meta was at $1. 39 trillion and Tesla was at $1. Micron's stock has soared over 236% in the past month alone, closing Friday at $1,132 a share.
In comparison, it spent years upon years before mid-2025 at below $100 a share. It's a dizzying rise for a company that most consumers associated with the tiny memory cards that, back in the day, were commonly needed to boost PCs, smartphones, or other device storage. Wall Street isn't sweating over that product line.
For more details please read the original article at TechCrunch AI.
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