Key Facts on Micron Technology and the AI Chip Market
Micron Technology, a leading provider of high-bandwidth memory chip solutions, is positioned for significant growth as demand for AI infrastructure accelerates. This year, hyperscalers are expected to spend at least $500 billion on capital expenditures, driving prices for memory chips like DRAM and NAND up by as much as 60% and 38% respectively in the first quarter. Micron’s total addressable market (TAM) in memory is projected to expand from $35 billion in 2025 to $100 billion by 2028, indicating a robust demand in the memory chip sector.
As of now, Micron’s shares have surged 348% over the past year, yet it trades at a forward price-to-earnings ratio of 12, significantly lower than other prominent players in the AI chip market. According to Bloomberg Intelligence, the market for AI accelerators is anticipated to grow at a 16% compound annual growth rate (CAGR) through 2033, reaching a total size of $604 billion, further bolstering Micron’s growth prospects.
