The growing demand for AI training and inference continues to drive increased usage of high-bandwidth memory (HBM), making Micron, a memory chip manufacturer, one of the top-performing companies in the U.S. semiconductor sector over the past five years. According to the data cited in the article, Micron closed at $1,016.59 last Friday, achieving a cumulative gain of approximately 1,313% over five years, surpassing NVIDIA’s return of about 912% during the same period.
Five-year growth has outperformed most large tech stocks.
This rally is also reflected in the company’s market capitalization. The article states that Micron’s market cap has risen from approximately $104.2 billion at the end of 2021 to around $1.15 trillion today, an increase of over $1 trillion. Compared to the current S&P 500 constituents, some companies added to the index in recent years have seen even higher gains, but among large technology stocks that have remained in the index over a longer period, Micron’s performance remains particularly outstanding.
The article notes that SanDisk and Comfort Systems USA had stronger five-year performance, but neither company was a member of the S&P 500 for the entire measurement period, making them not directly comparable to long-term constituents like Micron and NVIDIA.
AI is changing the pricing power of memory chips.
The key factor driving Micron's revaluation is the rapid increase in demand for HBM from AI servers. HBM is a critical component of AI accelerators, as advanced GPUs require higher bandwidth and faster-responsive memory to process large volumes of data.
According to industry analysis cited in the text, current HBM demand has already surpassed available supply by more than double. Micron plans to increase its monthly HBM wafer production capacity to approximately 100,000 wafers by the end of this year, a significant expansion from previous levels. The tight supply situation has also strengthened the pricing power of related products.
Revenue surges, market looks ahead to the next earnings report
Driven by demand, Micron’s latest fiscal quarter showed significantly stronger performance. The article noted that the company’s third-quarter revenue reached a record $41.46 billion, compared to $9.3 billion in the same period last year. Wall Street’s view of the memory industry has also shifted, with an increasing number of investors now seeing memory as part of AI infrastructure rather than merely a traditional cyclical semiconductor business.
However, the market has not entirely overlooked the risks. The article notes that the storage industry still exhibits cyclical characteristics. If Micron, Samsung Electronics, and SK Hynix simultaneously release new capacity in the coming period, it could lead to a supply rebound; if AI capital expenditures slow down, prices may also come under pressure soon.
Micron's next earnings test will arrive on September 30. For investors, the focus will shift to whether HBM supply and demand remain tight, and whether AI-related revenue can sustain its current growth momentum.