#MicronOvertakesMetaInMarketValue

💾 Micron is now bigger than Meta and Tesla in terms of market value. This is a deal for a company that makes memory chips. I want to explain what happened to Micron on Wednesday because it is really important.

Microns value went up by over 18% in one day which is a lot. This means Micron is now worth $1.4 trillion, which's more than Meta and Tesla put together. One year ago Microns shares were selling for than $100 each. Now Micron is one of the companies in the United States, alongside Nvidia, Apple and Microsoft. This is not a small increase. It is a complete change in how people think about Microns business.

The reason for this change is Microns latest earnings report, which was really impressive. The company made $41.46 billion in revenue in the quarter, which is 345% more than the same time last year. Most of Microns sales come from data centers, which's over 60% of the total. Also all of Microns HBM capacity is sold out until the end of 2026. What is really interesting is that customers have already paid $22 billion to secure supply contracts for years. This is the important part of the report but many people are not paying enough attention to it.

Think about what it means that customers are paying $22 billion upfront to get access to HBM. This shows that companies that use AI are willing to pay a lot of money to make sure they can get the memory chips they need. This is not normal. It is like what happens in markets where there is a shortage of something. The market is finally starting to understand that Micron is in a position.

People are comparing Micron to Nvidia, which's a good comparison. When Nvidias GPU business started to be used for AI the companys value went up from $300 billion to $3 trillion in just 18 months. The same thing is happening to Micron because of its memory chips. HBM is a component for AI systems and Micron is one of the few companies that can make it.

There is another company called SK Hynix that's also important in this market. SK Hynix controls a part of the global HBM market but its stock price is lower than Microns because it is listed on a different exchange. However when SK Hynix lists its stock on the Nasdaq exchange on July 10 this will change. If Micron is worth $1.4 trillion with its market share then SK Hynix could be worth a lot more because it has a share of the market.

For people who trade cryptocurrency Microns success is a sign that AI infrastructure's a big deal. The fact that customers have committed $22 billion to buy Microns products shows that this is an growing market.

Now that Micron is worth more, than Meta and Tesla combined and HBM is sold out until the end of the year the question is whether this trend will continue. Will Microns value keep going up like Nvidias did. Is it time to take profits and invest in something else like Bitcoin?

‍#GateSquare #TradFi @Gate_Square