Micron Just Crossed $1,000 a Share. Here's the Math on Where It Goes Next.

Key Points:

• Micron Technology's shares surged past $1,000, pushing its market capitalization to $1.3 trillion, driven by skyrocketing demand for high-bandwidth memory (HBM) and advanced DRAM fueled by AI workloads.
• The company benefits from tight HBM supply, with 2026 production capacity already sold out and DRAM shortages expected to persist beyond 2027 due to accelerating AI data center investments.
• Micron's current price-to-earnings (P/E) ratio of 48 is high compared to historical memory market cycles, but reflects stronger earnings growth and multiyear supply contracts with hyperscalers that reduce boom-bust volatility.
• Compared to AI chip peers like Nvidia and Broadcom, Micron's forward P/E of 9.5 appears attractive, indicating potential for further valuation growth as AI infrastructure demand solidifies.
• Risks include potential oversupply if new foundry capacity accelerates or if hyperscaler spending slows, which could compress margins and valuations, but near-term supply constraints and contract visibility support continued upside.