Micron’s Market Cap Could Soar Up To $3 Trillion By 2030 As AI Supercharges Memory Demand, Says New Street

New Street upgraded Micron to ‘Buy’ from ‘Neutral’ with a price target of $1,250, implying an upside potential of about 29% from current levels.

• New Street said Micron remains attractively valued even after its recent rally, pointing to the company’s price-to-cost-of-goods-sold ratio.
• The firm expects memory demand to ramp quickly in the coming years as AI-related demand expands.
• New Street sees AI accounting for two-thirds of memory demand and expects annual memory demand growth of 15% beyond 2030, compared with a historical average of 10% over the past 20 years.

Micron Technology Inc. (MU) could become a $2 trillion to $3 trillion company by 2030 as artificial intelligence drives a rapid increase in memory demand, New Street stated in its latest note.

According to TheFly, New Street upgraded Micron to ‘Buy’ from ‘Neutral’ with a price target of $1,250, implying an upside potential of about 29% from current levels.

Micron shares were up nearly 3% in Friday’s opening trade, with market capitalization hovering around $1.1 trillion.

MU Remains Attractively Valued, Says New Street

New Street said Micron remains attractively valued even after its recent rally, pointing to the company’s price-to-cost-of-goods-sold ratio. Micron shares have surged more than 10% in the previous five trading sessions.

New Street added that Micron’s improving cost of goods sold reflects stronger industry economics, including improving profitability and through-cycle cash generation.

The firm expects memory demand to ramp quickly in the coming years as AI-related demand expands. New Street sees AI accounting for two-thirds of memory demand and expects annual memory demand growth of 15% beyond 2030, compared with a historical average of 10% over the past 20 years.

The firm also believes the memory industry is becoming less cyclical. New Street said high-bandwidth memory deserves a premium to commodity DRAM because of its more structural demand characteristics.

By 2030, New Street expects Micron to generate more than $150 billion in annual free cash flow and hold more than $600 billion in cash, both of which it described as peak figures.

Michael Burry Increases MU Short

“The Big Short” investor Michael Burry said in a post on Thursday that he increased his short position in Micron as the stock approached $1,000 again, calling the move “counter to trend” as he reduced exposure elsewhere in his short portfolio.

Burry said he had been roughly breakeven on his overall short positions but was moving into a loss position as the broader market and some individual stocks rallied. As part of his effort to reduce exposure, he closed his put options position in the iShares Semiconductor ETF (SOXX) and shifted into a larger position in Invesco QQQ Trust (QQQ) puts.

Micron remains one of Burry’s largest short positions, behind the SOXX short and ahead of Nebius Group (NBIS), Nvidia Corp. (NVDA), Oracle Corp. (ORCL) and Palantir Technologies Inc. (PLTR).

Micron Launches $250 Million AI Fund

On Thursday, Micron launched the Micron Ventures Paradigm Fund, a $250 million investment vehicle focused on companies developing technologies across the AI stack.

The company said that it is Micron Ventures’ third and largest fund to date, with investments spanning model architectures, compute infrastructure, enterprise applications and physical AI.

“These advancements converge on one common need: high-performance memory and storage solutions,” said Micron’s Vice President of Corporate Development, Rene Hartner.

MU Sees Memory Supply Tightness Extending Beyond 2027

Micron Chief Business Officer Sumit Sadana said during KeyBanc Capital Markets Annual Technology Leadership Forum earlier this week that customer demand signals have increased since the company’s latest earnings report.

“We do expect these very tight industry conditions to continue beyond calendar year 2027,” Sadana said, while adding that Micron is increasing investments across its global manufacturing network to respond to demand.

He added that AI-driven memory demand remains in its early stages as adoption expands to agentic AI, which can require five to 30 times more tokens than chat interfaces for similar tasks.

Sadana also highlighted growing demand for high-bandwidth memory, saying the shift toward HBM is putting additional pressure on broader memory supply. According to Sadana, customers are increasingly identifying DRAM as their primary constraint, rather than power, real estate, data-center capacity or logic wafers.

What Retail Traders Think Of MU

Retail sentiment on Stocktwits around Micron trended in the ‘bearish’ territory at the time of writing.

MU stock is up 242% year-to-date and 679% over the past 12 months. The S&P 500 ETF Trust (SPY) is up 21% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 26%.

The iShares Semiconductor ETF (SOXX) is up 117% during this period, while the State Street Technology Select Sector SPDR ETF (XLK) is up 42%.

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