Can Micron Technology Soar 126% and Become the 6th-Largest Public Company? One Wall Street Analyst Thinks So.

Roughly 3 decades ago, the advent and mainstream proliferation of the net changed the planetary maturation trajectory forever. Since then, investors person waited, often impatiently, for the adjacent technological leap guardant to instrumentality shape. The improvement of artificial quality (AI) is that long-awaited leap.

Enabling bundle and systems to marque autonomous, split-second decisions is simply a $15.7 trillion planetary opportunity, according to PwC analysts. But portion graphics processing portion (GPU) goliath Nvidia is often viewed arsenic the instauration of the AI infrastructure build-out, it's arguably been dethroned by Micron Technology (NASDAQ: MU).

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

Shares of Micron person rallied astir 700% implicit the trailing year, and 1,850% since the commencement of 2023 (i.e., erstwhile AI stocks truly began to instrumentality off). But according to 1 Wall Street analyst, the bully times are conscionable getting started.

Micron tin vault to a $2.5 trillion valuation

Although Wall Street analysts person been adjusting their terms targets connected Micron astatine a breakneck gait this year, fewer person been tripping implicit themselves to boost estimates rather similar Ben Reitzes astatine Melius Research.

Over a two-month stretch, Retizes initiated sum with a $700 terms people (April 27), accrued his firm's terms people to $1,100 (May 18), and doubled it again to $2,200 (June 25). A $2,200 terms people implies a astir $2.5 trillion marketplace headdress and upside of 126% from wherever shares closed connected July 2. This would marque Micron larger than Taiwan Semiconductor Manufacturing, Space Exploration Technologies (SpaceX), and Broadcom, among others.

The overwhelming optimism surrounding Wall Street's newest trillion-dollar institution chiefly involves its AI ties. Micron is simply a cardinal supplier, and the sole large U.S.-based manufacturer, of representation solutions (NAND flash, DRAM, and high-bandwidth representation (HBM)) utilized successful AI-accelerated information centers. HBM is stacked with GPUs to facilitate the ultra-fast transportation speeds needed to bid ample connection models and marque split-second decisions successful AI information centers.

The aforesaid week that Reitzes raised Melius Research's terms people connected Micron to $2,200 is erstwhile the institution announced it had secured astir $100 cardinal successful strategical semipermanent agreements for representation solutions. With request for representation solutions handily outstripping supply, Micron is enjoying otherworldly pricing power.