1 hour ago
3
Anthony Di Pizio, The Motley Fool
Fri, May 29, 2026 astatine 10:05 AM CDT 6 min read
On Tuesday, May 26, Micron Technology (NASDAQ: MU) surpassed $1 trillion successful marketplace capitalization for the precise archetypal time, capping disconnected an explosive 830% summation successful its banal implicit the past 12 months. It's officially the 3rd American semiconductor institution to articulation the exclusive trillion-dollar club, down Nvidia and Broadcom.
Micron is 1 of the world's apical suppliers of high-bandwidth representation (HBM) for the information center, a captious constituent successful the artificial quality (AI) hardware stack. The institution has unthinkable pricing powerfulness close present due to the fact that request for representation is heavy outstripping supply, which is fueling a surge successful its gross and earnings.
Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected a little-known company, called an "Indispensable Monopoly," providing the captious exertion Nvidia and Intel some need. Continue »
But the supply/demand imbalance volition yet normalize. Is Micron's trillion-dollar valuation genuinely sustainable?
AI is transforming the representation manufacture
There are respective components to the AI information halfway hardware stack. Graphics processing units (GPUs) present astir of the computing powerfulness successful AI workloads, but they can't run astatine maximum ratio without HBM from suppliers similar Micron. HBM stores accusation successful a acceptable authorities for erstwhile the GPU needs it, truthful a precocious capableness keeps information flowing smoothly. A debased representation capacity, connected the different hand, would origin bottlenecks, creating a laggy idiosyncratic acquisition erstwhile serving AI chatbots oregon AI agents.
Micron's HBM3E information halfway solution offers 50% much representation than thing other connected the market, portion consuming 30% little energy. This is ideal, fixed that information halfway operators are trying to maximize processing powerfulness portion minimizing costs, which is wherefore Nvidia uses this spot alongside its industry-leading Blackwell GPUs.
However, Micron's caller HBM4 solution is present successful production, and it volition present 60% much capableness portion being 20% much vigor businesslike than HBM3E. As a result, Nvidia has selected it for its upcoming Vera Rubin GPU system, which is expected to pb the manufacture successful presumption of AI processing performance.
Demand is truthful beardown that Micron's full 2026 proviso of HBM is already sold out, but the company's semipermanent AI accidental is overmuch bigger than the information center. Manufacturers of idiosyncratic computers and smartphones are besides demanding higher representation capacities to tally AI bundle on-device, which volition make a faster idiosyncratic acquisition and trim the reliance connected costly information centers. More representation volition yet construe to much gross for Micron.
.png)
English (CA) · 
English (US) · 
Spanish (MX) ·