Micron Technology is gaining favor on Wall Street as a key beneficiary of the rapid buildout of artificial intelligence infrastructure, drawing comparisons to Nvidia’s early role in the sector. While Nvidia and Advanced Micro Devices dominate the market for general-purpose graphics processing units that power generative artificial intelligence workloads, Micron sits in an adjacent but crucial part of the value chain: memory and storage. As artificial intelligence applications grow more complex, demand for high-bandwidth memory, dynamic random access memory, and NAND chips is accelerating, positioning Micron as a category leader in these components.
Market forecasts highlight the scale of the opportunity. According to Bloomberg Intelligence, the total addressable market for artificial intelligence accelerators is expected to grow at a 16% compound annual growth rate through 2033, reaching a size of 604 billion. In 2025, Micron’s TAM was estimated to be just 35 billion. However, the company’s management is forecasting the memory market to grow to 100 billion by 2028. These projections suggest that memory demand could outpace growth in the graphics processing unit segment, reinforcing the view that Micron’s products will experience powerful secular tailwinds as artificial intelligence adoption spreads.
Hyperscale data center operators are driving a surge in capital expenditure that is tightening supply and lifting prices across the memory market. Just this year alone, big tech is expected to spend more than 500 billion on artificial intelligence infrastructure. These spending patterns have fueled massive shortages in high-bandwidth memory solutions specifically, and industry research from TrendForce suggests that prices for DRAM and NAND chips could soar by as much as 60% and 38%, respectively, in the first quarter alone. Against this backdrop, Micron’s stock has rallied sharply, with shares rising 348% over the last year, yet the company still trades at a forward price-to-earnings multiple of 12, a meaningful discount to many artificial intelligence chip leaders. Supporters argue that this combination of structural demand, pricing power, and relatively low valuation makes Micron a compelling way to invest in the next phase of the artificial intelligence hardware cycle, even if its trajectory does not match Nvidia’s historic run.
