en.Wedoany.com Reported - Micron's market capitalization briefly surpassed Meta and Tesla this week before retreating. The chipmaker, which started with memory cards, has seen demand surge due to the expansion of artificial intelligence data centers, with its stock price soaring over 236% in the past month to $1,132 per share, after trading below $100 for years before mid-2025.

As of Friday's close, Micron's market cap stood at approximately $1.27 trillion, compared to Meta's $1.39 trillion and Tesla's $1.42 trillion.

Wall Street's bullish outlook is based on a shortage of system memory chips, including DRAM and NAND, particularly high-bandwidth memory HBM, driven by the AI data center construction boom. An AI server requires far more memory than a laptop, and AI system makers like Nvidia, along with hyperscalers such as Microsoft, Amazon AWS, Google, Meta, and Oracle, are heavily purchasing memory, forcing PC makers like Dell and HP, as well as other device manufacturers, to join the stockpiling frenzy.

This supply shortage, dubbed "RAMageddon," is expected to last until 2027 and has already pushed up prices for consumer electronics such as Apple products and Xbox game consoles.

Micron's third-quarter earnings report released last week showed revenue quadrupling year-over-year to $41.45 billion, with profit surging from $1.88 billion to $28.2 billion. The company expects fourth-quarter revenue between $49 billion and $51 billion. Micron is addressing concerns about an AI bubble by highlighting a series of long-term supply agreements, including partnerships with Nvidia and AI lab Anthropic. In its earnings presentation, Micron stated it has signed 16 strategic customer agreements across data center, consumer, and automotive markets, which are expected to fundamentally change its business model.

William Blair technology analyst Sebastien Naji noted in a research report that demand growth continues to outpace the ramp-up of new cleanroom capacity. "Given the high likelihood of continued average selling price growth over the next few quarters and increasing revenue visibility through a rapidly expanding network of long-term agreements with key customers, we believe earnings growth is more sustainable," he said, reiterating an "outperform" rating.

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