What's Next After Nvidia, TSMC, and Broadcom Hit the Trillion-Dollar Mark? Micron Technology Could Be Your Answer

The semiconductor industry has undergone a seismic shift over the past three years. After trillion-dollar valuations became the new normal for chip giants like Nvidia, Taiwan Semiconductor Manufacturing, and Broadcom, savvy investors are asking a critical question: what next? The answer might surprise you—and it points directly to memory chips rather than the processors that have dominated headlines.

Why Memory Chips Are the Overlooked Engine of AI Growth

The narrative around artificial intelligence has fixated on GPUs and custom silicon. But this tells only half the story. Hyperscalers including Microsoft, Alphabet, Amazon, and Meta Platforms are racing to build not just training clusters, but increasingly sophisticated inference systems capable of powering agentic AI and autonomous robotics. These workloads demand something that GPUs alone cannot provide: massive memory bandwidth and lightning-fast data transfer capabilities.

This is where Micron Technology enters the picture. The company’s portfolio of high-bandwidth memory (HBM), DRAM, and NAND chips addresses a critical bottleneck in modern AI infrastructure. As workloads shift from large language models like ChatGPT toward more complex applications, the demand for efficient memory and storage solutions has become insatiable.

The Numbers Tell a Compelling Story

Market research from TrendForce paints a vivid picture of the opportunity ahead. DRAM and NAND chip prices are projected to surge 60% and 38% respectively in the near term, signaling both constrained supply and explosive demand. For Micron specifically, the results speak volumes: the company generated $13.6 billion in revenue during its first fiscal quarter of 2026—a 57% year-over-year surge. More impressively, this growth was broad-based across all major segments: cloud memory, core data, mobile, and automotive devices.

The profit story is equally striking. Micron achieved gross margins exceeding 40% and operating margins surpassing 30% across each business line. This profitability profile demonstrates that memory chip demand isn’t just about volume—it’s about pricing power and sustainable unit economics.

Looking ahead, the total addressable market for high-bandwidth memory alone is expected to reach $100 billion by 2028, nearly tripling from current levels. For a company already dominating this space, the trajectory looks nothing short of explosive.

The Valuation Inflection Point

Here’s where the investment thesis becomes compelling. Despite commanding fundamentals and a memory chip supercycle in full swing, Micron trades at a forward price-to-earnings multiple of just 12.3—a stark discount to its peers. Compare this to Nvidia, TSMC, and Broadcom, which command forward P/E multiples ranging from 30 to nearly 60. The gap reflects market perception rather than underlying value.

Wall Street’s projections underscore why this valuation gap may not persist. By fiscal year 2027, analysts expect Micron’s revenue to more than double while earnings per share could surge nearly fourfold. This kind of acceleration typically commands premium valuations.

Consider the math: at a modest forward P/E of 23—still below the premium chip leaders—Micron’s market capitalization would reach approximately $850 billion. At a forward multiple of 30, which is entirely reasonable given Micron’s indispensable role in AI infrastructure, the company would cross the $1 trillion valuation threshold.

The Path to the Trillion-Dollar Club

The journey from $100 billion to $1 trillion doesn’t happen overnight, but the momentum is undeniable. As hyperscalers continue their multiyear, multitrillion-dollar infrastructure buildouts, memory chips will become increasingly central to competitive advantage. Micron’s established market position, consistent execution, and exposure to the sector’s secular tailwinds position the company perfectly to capitalize on this shift.

The semiconductor industry’s evolution demonstrates a pattern: yesterday’s supporting players become tomorrow’s dominant forces. Nvidia transformed from a cyclical chip maker to an AI powerhouse. TSMC and Broadcom followed similar trajectories. Micron appears poised for its own inflection moment—the point where the market suddenly recognizes that after trillion-dollar valuations for GPU and custom chip leaders, the next logical candidate is the company that powers the memory infrastructure beneath it all.

For long-term investors tracking the AI infrastructure opportunity, Micron represents both a fundamental value proposition and a potential multibagger scenario unfolding over the next two to three years.