Wall Street thinks US memory maker Micron could be the next Nvidia

Micron, the Boise, Idaho-based memory chip maker, has captured Wall Street’s attention as investors bet it could become the next Nvidia. The company briefly surpassed Meta and Tesla in market capitalization on Thursday, though it fell back slightly by Friday. Micron closed Friday with a market cap of approximately $1.27 trillion, compared to Meta's $1.39 trillion and Tesla's $1.42 trillion.

Its stock has soared over 236% in the past month alone, closing Friday at $1,132 per share. This is a dramatic rise for a company that traded below $100 for years before mid-2025. The surge is fueled by the AI data center buildout, which has created a shortage of DRAM and NAND memory chips, especially High-Bandwidth Memory (HBM).

AI system makers like Nvidia and hyperscalers such as Microsoft, Amazon AWS, Google, Meta, and Oracle are buying massive amounts of memory, forcing PC makers like Dell and HP and other device manufacturers to hoard supplies. This supply crunch, dubbed "RAMageddon," is expected to last into 2027 and is already raising prices on consumer electronics like Apple products and Xbox consoles.

Micron reported blockbuster quarterly earnings last week, with revenue quadrupling year-over-year to $41.45 billion and profit skyrocketing from $1.88 billion to $28.2 billion. The company forecast fourth-quarter revenue between $49 billion and $51 billion.

To address concerns about a potential bust cycle, Micron has signed several long-term supply agreements, including with Nvidia and AI lab Anthropic. The company noted it has signed 16 strategic customer agreements across data center, consumer, and auto segments. Analysts like William Blair's Sebastien Naji see strong potential for durable earnings growth, citing demand outpacing new cleanroom capacity.