Read Desk. The increasing demand for Artificial Intelligence (AI) infrastructure and memory chips has taken American semiconductor company Micron Technology to new heights. The company’s shares jumped as much as 18.4% in trading on Thursday, making its market cap briefly greater than that of Meta Platforms and Tesla.
Market cap reaches $1.37 trillion
According to Reuters, Micron’s shares closed with a gain of 15.8% at the end of trading. The market cap of the company stood at $1.37 trillion, while the market cap of Meta was $1.38 trillion and that of Tesla was $1.41 trillion. However, Micron had overtaken both the companies during intraday trading.
Demand for AI chips becomes the biggest force
Micron forecast revenue of $50 billion for the fourth quarter ending in August. This is much higher than Wall Street’s estimate of $43.2 billion. The strong guidance boosted investor confidence that spending on AI infrastructure remains strong for now.
Advance orders worth $22 billion
The company has received advance commitments worth $22 billion for future supplies. This reflects record demand for high-bandwidth memory (HBM) and AI focused chips.
Chip shortage may persist even after 2027
According to Bloomberg, Micron CEO Sanjay Mehrotra said that supply is still far less than demand. They estimate that the shortage of memory chips may last until after 2027 and the situation will start improving from 2028.
Shares rise 326% in 2026
Micron crossed the market cap of $1 trillion for the first time in May 2026. After the latest earnings report, the stock has jumped by more than 15%, while so far in the year 2026, it has registered an impressive gain of 326%.
There is a boom in the entire semiconductor sector
The impact of Micron’s strong results was visible on the entire industry. The Philadelphia Semiconductor Index rose 3.2%. At the same time, SanDisk shares gained 22%, Western Digital 7.4%, Seagate Technology 4.3% and Qualcomm shares also strengthened.
Concern increased due to Apple’s decision
On the other hand, Apple announced to increase the prices of iPad and MacBook due to the rising cost of memory and storage chips. After this the company’s shares fell 6.1%. This intensified the debate in the market whether companies or customers will bear the ultimate burden of increasing expenditure on AI infrastructure.
Follow the LALLURAM.COM MP channel on WhatsApp
Comments are closed.