Micron's AI-driven memory demand lifts market value near tech giants

Micron Technology, a Boise-based maker of DRAM and NAND memory chips, saw its market value rise to about $1.27 trillion after a month-long rally that lifted its share price over 236 percent. The jump placed the company near the market caps of Meta and Tesla, though the valuation slipped slightly the following day.

The surge is linked to a shortage of high-bandwidth memory needed for artificial-intelligence servers, a condition analysts have dubbed “RAMageddon.” Major AI system builders and cloud providers such as Nvidia, Microsoft, Amazon Web Services, Google, Meta and Oracle have been buying large volumes of Micron’s products, driving up demand and prices across the sector.

Micron reported third-quarter revenue of $41.45 billion, four times its figure a year earlier, and profit of $28.2 billion, a sharp increase from $1.88 billion. The company projected fourth-quarter revenue between $49 billion and $51 billion. It also highlighted 16 strategic customer agreements covering data-center, consumer and automotive markets, including deals with Nvidia and AI lab Anthropic, which it says will help smooth future demand fluctuations.

Analysts responded positively. > "Given the strong likelihood of continued ASP growth in the coming quarters and improving revenue visibility thanks to a rapidly expanding set of long-term agreements with key customers, we see potential for more durable earnings growth and reiterate our Outperform rating," wrote William Blair tech analyst Sebastien Naji.

Micron’s rapid rise underscores investors’ search for public AI-related stocks that could match Nvidia’s performance, though the company’s long-term outlook will depend on whether the current memory shortage persists beyond the projected 2027 horizon.