Micron (NASDAQ:MU) is still well below the world’s trillion-dollar club, yet one top-ranked investor believes the AI boom that turned Nvidia (NASDAQ:NVDA) into a $5.3 trillion giant could eventually carry the memory company into far rarer territory as well.
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200% short exposure to NVDA with NVDSDanny Vena, who ranks among the top 1% of investors on TipRanks, believes continued AI adoption could one day push Micron toward a multi-trillion-dollar valuation.
That is an ambitious call considering Micron currently carries a market cap of about $860 billion, while only four companies worldwide – Alphabet, Apple, and Microsoft alongside Nvidia – have managed to climb above the $3 trillion threshold. Nevertheless, the 5-star investor believes that it’s going to happen.
So, what’s behind that bullish prediction? Micron supplies the DRAM, NAND flash, and HBM memory chips that underpin AI data centers, with demand far outpacing supply. To address this, the company is expanding production through new and upcoming fabs in Singapore (expected in 2028 with HBM packaging from 2027), Japan, New York, and Idaho.
This tight supply backdrop has been reflected in Micron’s financial results, with fiscal 2Q26 revenue reaching a record $23.9 billion, up 196% year-over-year, while EPS reached $12.07 alongside record free cash flow. Pricing power also strengthened significantly during the quarter, with gross margin surging to 74.4% from 36.8% and operating margin jumping to 67.6%. Management now expects the momentum to continue into FQ3, guiding for another record quarter with projected revenue of $33.5 billion, EPS of $18.90, and gross margin of 81% at the midpoint.
Wall Street currently expects Micron to generate about $109.7 billion in revenue during 2026, implying a forward price-to-sales ratio near 7. Maintaining a similar valuation multiple would suggest the company may eventually need annual revenue approaching $420 billion to support a $3 trillion market cap. Analysts also project about 41% annual growth over the next five years, which, if sustained, would place Micron on a potential path toward that valuation by the end of the decade.
“That said,” Vena adds, “Micron’s growth and Wall Street’s expectations have been growing exponentially in recent years, so that outlook is likely conservative.”
According to McKinsey & Company, with demand for advanced chips continuing to accelerate, the semiconductor market is projected to reach almost $1.6 trillion by 2030. This strength is also feeding through to Micron’s memory and storage products, as demand remains elevated and is supported by “secular tailwinds” that are expected to persist.
“Despite its blistering growth, Micron trades for just 12 times forward earnings (as of this writing),” Vena summed up, “giving astute investors the opportunity to buy the stock at an attractive price — before it joins the elite $3 trillion fraternity.” (To watch Vena’s track record, click here)
Turning to Wall Street, MU shares command a Strong Buy consensus rating, with 27 Buy ratings against only 3 Holds. Yet, after soaring 704% over the past year, the rally has become so aggressive that analyst targets have struggled to keep pace, leaving the average price target of $657.41 sitting about 14% below the current share price. (See Micron stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.