AMD and Micron Poised to Join the Elite $2 Trillion Tech Club, Analyst Predicts

Just a few months after major memory manufacturers crossed the $1 trillion market capitalization milestone, some semiconductor giants are now on track to reach $2 trillion, according to a prominent Wall Street analyst.

Ben Reitzes, head of technology research at Melius, said in a Wednesday note to clients that memory maker Micron and CPU-focused AMD may both be on the path to a $2 trillion market cap. AMD’s potential climb to $2 trillion is driven by the resurgence of central processing units (CPUs) in the era of agentic artificial intelligence, as system architectures require more CPUs relative to graphics processing units (GPUs).

“To achieve its next trillion, it will likely need to demonstrate that EPS power of $50+ is possible – meaning its 2030 target of > $20 in EPS needs to go a lot higher,” Reitzes wrote.

Micron’s $2 trillion path is founded on computational efficiency gains in AI that come as more memory is used in systems. However, the company faces headwinds from the traditional cyclicality of its business, characterized by boom-and-bust periods.

“The ‘memory’ of memory’s past is holding it down. Just wait for these guys to buy back 25% of their market cap in 2027/28 – not even Jensen can do that,” Reitzes said, referring to Nvidia CEO Jensen Huang.

On the other side of the spectrum, renowned investor Michael Burry—famous for shorting the housing bubble that triggered the 2007–2009 great financial crisis—has recently taken the opposite view. He thinks cyclicality is set to return to memory in force, and that ramping Chinese memory capacity will alleviate shortages that have enabled tremendous pricing power and profit margins in the sector.

“Over the next two years this shortage will blow off as production catches up, and memory will have a down cycle again,” Burry wrote in a Sept. 22 Substack post.

Micron will report earnings after the bell on Wednesday. Market makers are pricing a 7% move for the stock after the close. Earnings of $31.72 per share and sales of $51.33 billion are expected, according to estimates from FactSet. Micron stock was up 0.8% as of noon ET on Wednesday, with shares up 276% year to date.

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